Africa Focused News

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Africa, Aliko Dangote, Austria, Bharti Airtel, China, Emerging Africa, EOH, Eurobond, European Union, European Union-Economic Partnership Agreement, ghana, IFC, International Finance Corporation, Investment, Italy, Kenya, LeapFrog, mines, Momentum Global Investment Management, Nigeria, Oil, Oil & Gas, South Africa, South Sudan, Uhuru Kenyatta, United States, Zimbabwe

REPORT OF LAST WEEK (from 09/09/13 to 13/09/13)

by Dario Galluccio

This Blog is sponsored by http://www.reflexecogroup.com

Kenya: Stanlib plans $59m property investment

Asset management arm of South African-based Liberty Group, Stanlib, is looking to invest Sh5.2 billion ($59 million) for the construction of malls across Kenya.According to Stanlib, the malls will be financed by its $150 million African Direct Property Development Fund established in May this year.
Focused primarily on the developing malls in countries including Nigeria, Ghana and Uganda, the property fund aims to build 2 malls in Kenya, with search for development partners already ongoing.
Roberto Ferreira, the fund’s manager, told that the firm would develop “Probably a maximum of two (shopping malls) in Kenya.” Each mall would cost between $20 million to $30 million, with construction expected to commence at the latter part of 2015, however the fund’s manager did not disclose the proposed locations of the commercial buildings.
Kenya has been tipped as one of the leading African destination for property investment as its capital city, Nairobi, has grown through the years to become East and Central Africa’s business and financial hub. This has attracted significant interest from privately held entities in neighbouring regions such as South Africa, seeking newer markets to that will guarantee an upturn in revenue yields.
The Liberty group – which is 53 percent owned by South Africa’s biggest bank, Standard Bank Group – has joined current private real estate investor, Actis, in cementing its presence in the fast growing property market.

Ghana: 114th best place to do business

Ghana is in the 114th position in this year’s ranking of countries according to their competitiveness in doing business. This is according to the Global Competitiveness* *Report 2013-2014 which* *assessed 148 economies, providing insight into the drivers of their productivity and prosperity. The Report series which is published by the World Economic Forum remains the most comprehensive assessment of national competitiveness worldwide.
The report emphasizes that Ghana’s position is as a result of deterioration in its macroeconomic indicators.
The report used 12 criteria to judge each country’s competitiveness, including infrastructure, financial stability and the education system. But innovation was the key to climbing the rankings, according to the report’s authors.
The report said with regard to strengths, the country seems to be improving its public institutions, which are already somewhat strong by regional standards going up by five places to 70th. Government efficiency however ranked 57th among the 148 countries. It said some aspects of the nation’s infrastructure are good for the region, particularly the state of the ports, and financial institutions as well as goods markets are also relatively well developed ranking 52nd and 70th, respectively.
The report recommended that Ghana must do much more to develop and deploy talent in the country adding that education levels continue to trail international standards at all levels.

Kenya: to opens its doors to more Nigerian investors

Nigerian billionaire Aliko Dangote plans to invest $400 million(Sh34.9 billion) in Kenya’s mining sector as the two countries sign seven agreements to boost bilateral ties.
The billionaire who already has an investment in the sector under the Dangote Kenya Limted company that explores for industrial minerals; eyes more operations in the country as more and more precious resources are discovered. However the licence for Dangote Kenya was recently revoked among 40 others pending review into the issuing process ordered by Cabinet Secretary Najib Balala. The company said it will work with the taskforce charged with the review and Balala has welcomed the billionaire’s move to invest more in the local mining sector.
President Uhuru Kenyatta and his Nigeria’s Jonathan Goodluck said they will work together to improve trade and investment among the two countries as a boost to intra Africa trade. The two signed a memorandum of understanding on trade and investment, oil and gas, tourism, visa exemption for diplomatic passport holders, double taxation, agriculture, livestock and fisheries.

Nigeria: Airtel earmarks $3.7 Billion for network expansion

The Nigerian unit of India-based telecoms operator, Bharti Airtel, has announced a $3.7 billion investment to upgrade its broadband capacity from 3.75G to 4G.
The Company’s Regional Operations Director, Segun Macauley, who made this known in Kwara State, Nigeria at the weekend explained that the amount will be “spent on upgrading of network facilities to ensure uninterrupted calls on the network.”
The Indian multinational, which provides 2G, 3G and 4G services depending upon the country of operation, has presence in 20 countries across South Asia and Africa and is considered the world’s fourth largest mobile telecommunications company (by subscribers) with over 275 million subscribers as of July 2013.

Africa: Momentum launches Fixed Income Fund for investors

AUM asset manager, Momentum Global Investment Management says it has launched a multi-manager investment fund – the Africa Fixed Income Fund – for institutional investors looking to benefit from opportunities in Africa.
The Africa Fixed Income Fund will be managed by Head of Africa Investment Strategies at Momentum GIM, David Lashbrook while Zee de Gersigny, CFA (MD, Momentum Africa Investments LLC), the team in South Africa and other managers will offer their support.
Momentum, a wholly owned subsidiary of South Africa-based financial services group MMI Holdings wants investors to invest in sovereign debt across the region excluding South Africa.
The fund with a target size of $300 million was seeded with $10 million from the Momentum Group. It aims to attract institutional investors in the US and Europe along with the current clientele in South Africa.
Speaking on the investment fund, Lashbrook said while investing in Africa is not without risk, the continent’s fixed interest markets offer investors a compelling investment opportunity.

Ghana: To finalise decision on EPA by end of October

The Government of Ghana will by end of October this year declare its stance on the European Union-Economic Partnership Agreement (EU- EPA) with barely three years down the line for the deadline of negotiation. This was disclosed to the Economy Times in Accra by the Deputy Minister of Trade, Nii Lante Vanderpuje. He said a special committee set up by government to determine whether Ghana should sign or not will submit their report to Cabinet for an informed decision by end of October.
If Ghana signs onto the agreement, government will be committed to an overall trade and development policy which some analysts believe is not in the overall interest of the country.
In other news, the Minister of Trade, Haruna Iddrisu has stated that, Ghana’s declaration will be determined largely by the ECOWAS position on the trade agreement as the sub-region is yearning for a collective agreement which will favour all member States. He pledged that the government will take a collective decision on Ghana’s stance on the EPAs with Ivory Coast and Nigeria as well. He assured that, “Ghana will not sign onto any agreement that will be inimical to our international economic interests and more importantly to the economic interest of Ghana; we need to protect our exports.”

South Sudan: China pledges U.S $43 Million grant for mining

China has pledged a grant of $43 million to finance improvements to South Sudan’s mining industry, with the funds expected to arrive by the end of the month, South Sudanese Petroleum and Mining Minister Stephen Dhieu Dau.
Among the projects that will be funded by the Chinese grant will be a geological survey that will help to map South Sudan’s mining riches.
Geological surveys conducted in the 1970s and ’80s show that South Sudan may have rich deposits of gold, copper and uranium. But since those surveys were conducted, South Sudan’s mineral resources have remained unexploited.
South Sudan is also in the early stages of talks with China about a development loan of $1 billion to $2 billion, and about further Chinese investments in South Sudan’s petroleum and mining industries, Dau said.
Chinese Ambassador to South Sudan Ma Qiang said he is encouraging Beijing to step up investment in Africa’s, and the world’s, newest nation, where a report dated August 2011 by US advisory group Ergo says Chinese companies already control the oil industry, the source of most of South Sudan’s revenues and the target of the vast majority of foreign direct investment in South Sudan.

Kenya: To seek Nigeria’s support, offers 46 oil blocks

New east African oil player, Kenya has partnered with Nigeria, Africa’s largest oil producer to help it build a sustainable framework for its premature energy industry while offering 46 newly discovered oil blocks to Nigerian investors as prospective concession deals to increase investment in the sector.
Nigeria’s Minister of Petroleum Resources, Diezani Alison-Madueke made the disclosure adding that the partnership was one of the seven MoUs and bilateral Agreements signed by delegates of both countries at the maiden Nigeria-Kenya Investment Forum last week.
Nigerian industrialists and Africa’s richest man, Aliko Dangote who led the Nigerian delegate which included Forte Oil and Zenon Oil CEO Femi Otedola and Honeywell Group Chairman, Oba Otudeko, said a number of Nigerian investors would be willing to invest in the oil sector in Kenya.
In 2012, Africa Oil, a Canadian oil and gas company together with British explorer, Tullow Oil Plc discovered rich hydro-carbon reserves in Kenya. They put its estimate at 368 million barrels, a level capable of commercial exploitation.

Ghana: Why foreign investors shun Nigeria, turn to Ghana, By EU

The European Union, EU, has said that Nigeria’s cry for sustained foreign direct investment would continue to fall on deaf ears unless the country showed commitment to tackle the challenges of corruption and insecurity.
Head, Governance Programme of the EU delegation, Alan Mundaay, in Port Harcourt, Rivers State, said that the collapsed foreign direct investment in Nigeria was self inflicted as no foreign investor would put his money in an environment that was not enabling.
The EU chief, said: “Foreign investors will not come to Nigeria to lose money. They come to make money. If there are growing threats to many Nigerians themselves here, why will any foreign company put money and the lives of foreign human capital at risk in Nigeria under the prevailing security situation?
“It is easier for foreign airlines to work in Ghana in neglect of the far bigger Nigerian market because Ghana is more enabling and even Nigerians are running away from home to do business in Ghana. Nigeria does not need to beg for foreign investment. People will come when their investments are guaranteed. They will come without pushing when corruption is effectively tackled and the justice system reliable.”

Ghana: Miners return over $3bn

Mining companies returned about $3.2 billion, representing 73 percent of their mineral revenue through the Bank of Ghana (BoG) and the commercial banks into the country in 2012 as against statutory requirement of a minimum of 25 percent.
Toni Aubynn, Chief Executive Officer (CEO) of the Ghana Chamber of Mines, who made this known during a media briefing on activities of the chamber and mining companies, said the mining sector paid GH¢893.77 million in corporate taxes to the Ghana Revenue Authority (GRA) in 2012. The amount represented 36.98 percent of the total GRA tax collected within the period. The sector also contributed about GH¢1.46 billion to GRA, representing 27.04 percent of the authority’s total direct tax in 2012.

Ghana: $200m Eurobond proceeds has been released by government

The Ghana government has made available the cedi equivalent of $200 million for the payment of ongoing capital projects in various sectors of the economy to ensure their completion. The amount is part of the $740 million Eurobond proceeds that have been deposited in the country’s foreign reserve account. This means that the GH¢400 million has been moved from the reserve account into the Consolidated Fund, ready for effecting payments for work done.
The Minister of Finance, Mr Seth Terkper explained that financing the projects would be effected upon the adducing of certificates of work done by contractors.
The projects include the gang of six, comprising the Tetteh-Quarshie-Madina road, the Sofoline Overpass in Kumasi, the Anyinam-Konongo-Nkawkaw bypass, the Ho-Fumey road and the Asankragua-Enchi road. Other projects are the Sakumono Sea Defence, some agricultural and fisheries projects, electrification projects under the Self-Help Electrification Project (SHEP 4), as well as transportation and social infrastructure projects.
The finance minister added that the funding would also cover the refinancing of domestic debts as they fell due, under the new strategy to extend the tenor of domestic borrowing to channel long-term funding into long-term projects.

South Africa: FirstRand Bank sees 20% surge in revenue

In what it described as a pleasing set of numbers, FirstRand, South Africa’s third biggest bank, said earnings for the year to June had surged 20 percent to R15.3 billion ($1.5bn). Sizwe Nxasana, the CEO of First Rand, said the company had posted good results despite tough operating conditions.
He said the company’s retail portfolios of FNB, WesBank and RMB prolonged the growth its corporate lending book. It said its African activities have increased their contribution to the company during the period under review.
Reuters reports that FirstRand said it has a $1 billion war chest to chase opportunities on the African continent.
“We grow organically, just like we are growing organically in Zambia, Tanzania, India and Nigeria. Those platforms obviously take long to fully establish, but they are doing pretty well,” Chief Executive Sizwe Nxasana told Reuters.

South Africa: Still first for investment in Africa

Africa continues to increase its investor allure, with South Africa still the continent’s most attractive investment destination, now closely followed by Nigeria, according Rand Merchant Bank’s (RMB’s) latest Where to Invest in Africa report.
Nigeria moved from third to second place in RMB’s report and is “close on the heels of South Africa”, RMB said in a statement, adding that Nigeria could overtake South Africa in the next two to four years “or even sooner” depending on its rate of economic growth.
Another notable change in RMB’s latest rankings is Ghana’s climb up the rankings, from 10th in 2007 to 4th in 2013, despite being economically one-fifth the size of continental giants South Africa, Nigeria and Egypt.
Of the 52 countries surveyed, 42 showed improved investor attractiveness, RMB said, with the biggest improvements coming from some of the continent’s most troubled countries, notably Sao Tome and Principe, Gabon, Cameroon, Sierra Leone, Congo, Mauritania and Liberia.
RMB’s report gauges investment attractiveness using three factors: market size (GDP), economic growth (GDP forecasts for the next five years), and operating environment.
As a supplementary ranking, the report also considers the effect of regional affiliation on countries’ economic attractiveness.
In terms of this regional methodology, South Africa is ranked third, “underscoring its importance as a gateway into Africa”, Rwanda climbs to second spot, and Mauritius comes first based on its access to broader markets within the Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (Comesa).
However, RMB notes, African countries still have a way to go in order to compete with the most attractive investment destinations worldwide, with China and the US topping the overall list and only two African countries – South Africa at 33rd and Nigeria at 38th – making the top 40.

Emerging Africa in the global economy

For all its size and diversity, Africa has been marginalised as of little consequence to the rest of the world, says Ernst Stetter, the General Secretary of the Foundation for European Progressive Studies. But he warns that neglecting Africa could turn out to be a disastrous mistake. This statement is one of the honest admissions by the rest of the world that the continent is gradually but relentlessly putting its house in order to play a leading role in the world marketplace.
Africa has abundant natural resources. The continent ranks first in the world in its reserves of gold, bauxite, chromites, cobalt and diamonds. It is rich in palladium, phosphates, platinum group metals, titanium minerals, vanadium and zircon. African production accounts for 80 per cent of the world’s platinum group metals; 55 per cent of chromites; 49 per cent of palladium; 45 per cent of vanadium and up to 55 per cent of gold and diamonds.
Africa offers easy market access to Europe, as well as to the US and recently China. In many cases as it is for Ghana, the economies of Africa offer extraordinary investment opportunities with high rates of return.
African countries have become more politically stable over the past decade, with growth surging up consistently. The continent has grown at an average growth rate of 5.5 per cent of Gross Domestic Product over the last decade, with the trend expected to continue even when many rich economies are experiencing recession. Many economies on the continent have performed well due to better regulatory regimes, structural reforms, higher growth rates, rising foreign direct investment and foreign exchange reserves, robust export performance, and lower debt levels.

Ghana: To make $7.5bn from oil & gas

According to the Commercial Director of Kosmos Energy, Philip Liverpool, Ghana is expected to rake in about 7.5 billion dollars from the oil and gas industry within the next two years.
This is about half of the country’s budget. The money will come in a form of taxes, royalties as well as being a partner of the Jubilee Oil Field.
Kosmos Energy says it will continue to maintain its 25 percent stake in the jubilee oil field. Vice President and Country Manager, Ken Keag told that his outfit will be a significant player in the oil and gas industry. Mr. Keag explained that 10 fields are expected to start producing oil by 2016.
Presently Ghana is exporting more than 110,000 barrels of oil per day.

Kenya: Chinese firm will construct $342m power dam

China Hydro-Power Company will next month, begin preliminary work for the construction of an electricity dam in Kenya.
The project, which is situated at Uasin Gishu county and cost an estimated Sh30 billion ($342 million), would help reduce high production cost in country, consequently attracting greater investments into East Africa’s industrial sector.
It was reported earlier in May that some Kenyan manufacturers were considering moving their businesses across the region’s boarders as high energy costs continue to steal a huge chunk of their revenues. They have targeted Northern and Southern Africa for cheaper power.
This could negatively impact Kenya’s economy, as GDP would drop drastically and unemployment would skyrocket. Fortunately, the development of alternative sources of electricity such as dams should help reduce the enormous financial burden currently placed on manufacturers.
“Reducing the cost of power by coming up with other preferable options is a plus and one sure way of attracting and retaining investors,” said Charles Mose, chairman of Uasin Gishu’s chamber of commerce.

Africa: Africa Oilfield Logistics invests $4m in Ardan

Africa Oilfield Logistics (AOL) has invested $4 million to acquire a 49 percent stake in Ardan Risk & Support Services, an oilfields and logistics company, to increase its market share and expand operations. In an official statement, the AIM-listed investment company said the investment was in line with its strategy of expanding its presence in the rapidly developing sub-Saharan Africa oil and gas industry by “by providing loan funding.”
According to an official statement, AOL is also looking at additional markets, particularly in Madagascar, West and North Africa. And with an aggressive expansion programme underway, a high calibre management team in place and top quality projects underway and in the pipeline, Ardan expects to continue its growth trajectory over the next few years.
The group which is a multi-divisional Africa-focused support service and logistics company, has established international client base providing a full spectrum of products and services ranging from the provision of remote workforce accommodation to facilities management and medical support. It now services multiple sectors including oil & gas, mining, construction, engineering, industrial, NGO and governmental, allowing its clients to operate and develop their businesses and services efficiently on the African continent.

Zimbabwe: China will invest

A delegation from the Chinese government met President Mugabe at State House in Harare yesterday and pledged investment worth “several billions of dollars” in capital projects that will result in major economic take-off.The Herald is reliably informed that Chinese companies China International Fund and Singapore OKP Group intend to build two power plants each with a 350-megawatt capacity to ease current electricity challenges.
Another Chinese company, Baoda Petroleum Corporation, will invest in petroleum refinery in an estimated US$10 billion investment. The companies intend to produce petrochemicals and fertiliser to boost the agriculture sector.
Other Chinese firms also intend to build a water pipeline from the Zambezi River to Bulawayo in a move set to ease perennial water shortages in the country’s second largest city — the industrial hub that was yearning for development for years.
Huatai Automobile, another Chinese company, pledged to build a vehicle assembly plant while other businesses from the world’s second largest economy are targeting the rehabilitation of roads, railways and national housing projects. The Chinese investments come against the backdrop of peaceful and democratic elections resoundingly won by Zanu-PF.

Ghana: Inflation at 11.5% in August

The average change in prices of goods and services in the country, measured by inflation, dropped to 11.5 per cent in August after registering a consistent rise since January, this year. The August figure was 0.02 per cent lower than the 11.8 per cent recorded in July this year.
The drop was generally influenced by both the food and non-food groups. Some of the items in the two groups recorded drops and that impacted the whole rate.
Year-on-year inflation, which compares the change in prices of goods and services in one month against the corresponding one in the previous, has been on the rise since January, after ending last year on a record low of 8.8 per cent.
From 10.1 per cent in January, the rate rose to 10.9 per cent in April, before peaking at 11.8 last month. That consistent rise was mainly influenced by corresponding increases in prices of goods and services which was then triggered by a weakening exchange rate regime and an upward adjustment of prices of petroleum products.
The decline in the rate for August comes at a time the cedi is regaining strength against some of its main foreign counterparts, with prices of goods and services stabilising, albeit slowly.

Ghana: Commercial production, export of oil yields $1.4 billion revenue

According to the Minister of Energy and Petroleum, Mr Emmanuel Armah Kofi Buah, Ghana earned $1.4 billion from the commercial production and export of oil from 2011 to June 2013.
He said 77 million barrels of oil had been produced as of September 10, out of which about 13 million barrels, representing Ghana’s share, went to the Ghana National Petroleum Corporation (GNPC). The government invested the revenue in infrastructural development and other agreed purposes.
Mr Buah said the country earned $444.12 million in 2011, $541.07 million in 2012, while $422.76 million had been accrued as of the end of June 2013.
The country’s oil output was set to further increase with the recent signing of a plan of development for the Tweneboah, Enyenra and Ntomme (TEN) project and ongoing negotiations for the finalisation and signing of a plan for the development of the Sankofa oil and gas fields.

South Africa: South African life insurer sets aside $100m for African expansion

MMI Holdings, South Africa’s 3rd largest life insurer, said it has reserved 1 billion rand ($100 million) to fast-track its expansion push across Africa. The JSE-listed firm also earmarked 500 million rand ($50 million) for its short term insurance business as it purchased 70 percent of insurer Mauritian Eagle.
It plans to spend the entire funds on acquisitions in 12 countries outside South Africa where MMI operates with talks for another purchase already in place, though nothing concrete has been established at the moment.
This revelation follows the release of its year-end financial results, which showed some positive figures. Its operating divisions’ profit witnessed a 19 percent rise, while its diluted headline earnings – also a profit measurer – rose 10 percent to 3.2 billion rand ($322.9 million). Also the Value of new business went up 19 percent to R711 million ($71.7 million).

Africa: IFC invests $63m in affordable housing

The International Finance Corporation (IFC), the largest global development institution, said it had invested more than $63m in a housing solutions fund for the support and development of affordable housing in sub-Saharan Africa.
The International Housing Solutions (IHS) Fund II aims to address the need for housing across the continent and the lack of affordable housing. The first IHS fund has already committed more than 200$ million to providing affordable housing in emerging markets.
Speaking at a press conference in Johannesburg, Saleem Karimjee, IFC senior manager for Southern Africa, said services such as access to quality housing were a priority in Africa.
The National Housing Finance Corporation is working with the IFC, and CEO Samson Moraba said the corporation was delighted with the investment as it would accelerate the delivery of housing. Its mandate is to broaden access to affordable housing finance for low- to middle-income South African households.

Nigeria: Austria partner to boost trade and investment

Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Austrian Federal Economic Chamber (AFEC), the apex chamber of commerce in Nigeria and Austria, have signed a Memorandum of Understanding that will help boost business and economic activities between the two countries. The MoU which was signed at the first Austrian-Nigerian business forum, in Lagos, will provide opportunity for the commerce industries to explore other ways of mutually beneficial relationship.
NACCIMA President, Alhaji Badaru Abubakar, who was represented by the Second Deputy National President, NACCIMA, Iyalode Alaba Lawson, in his delivery speech titled : “Foreign Direct Investment – A Global Strategy,” said Nigerian economy is too large to be ignored for Foreign Direct Investment as it holds the eighth largest population in the world, 10th largest oil and gas reserves, fourth largest equity market in the MSCI Frontier Market index, and home to a stable of large, well capitalised banks and emerging world’s largest cement companies. He however noted that despite the impressive data presented, Nigeria’s business and investment environment, like that of any other developing economies in the world, has its peculiar challenges.
Meanwhile, Austrian Ambassador to Nigeria, Joachim Oppinger, noted that Nigeria-Austria bilateral business is actually improving, adding that bilateral trade between Nigeria and Austria is in the range of 100 million euros in export.
Austria is one of the richest countries in the world with thriving manufacturing sector and a renowned know-how in the fields of renewable energy and environmental technology. It was recently ranked the 10th happiest nation in the 2013 World Happiness report.

Africa now part of EOH strategy

IT solutions provider, EOH, said it is poised to make Africa part of its strategy and get down to business on the continent. Asher Bohbot, the head of EOH, told this followed a decision taken a couple of months back at the company’s executive committee meeting.
Bohbot said the company had formed a structure that will look at Africa and it has identified a number of people that will be dedicated to Africa. This structure and the people’s main objective would be to pay more attention to the African continent.
He did not name the countries that the company was preparing to enter in the short term. But this was a surprising announcement in that not long ago the company had told its shareholders that it would be very cautious about Africa and take their time when it came to investing in Africa.

Africa: African Union invites Indian investment

Africa is seeking India’s technical support and experience as it moves towards building a contemporary continent, a top African Union (AU) official has said, saying more Indians should visit Africa and invest in Africa.
“For us to look at our future with confidence we need to address our needs. India is supporting us in this. We are seeking technical support and share of experience and nothing else,” AU Commission Chief of Staff Jean Baptiste Natama told IANS during a visit here.
Capacity building and value development of skills to help Africans better organise themselves is one of the major areas in which India is collaborating with the 54-nation continent, said Natama, who was here for a meeting on adopting the Plan of Action of the Enhanced Framework for Cooperation for the India-Africa Forum Summit-II (IAFS). Natama described the Indian Technical & Economic Cooperation Programme (ITEC), under which African nations get scholarships in India to study across various sectors including agriculture, as an example of South-South cooperation.
He said India and Africa are bound by historical ties. He said both sides need to regularly consult each other and make sure “we are promoting the interests of the two sides”. “We are calling for Indians to visit Africa, to learn more about Africa and to invest in Arica. We want to assure them they will always be welcome in Africa,” said Natama.

Ghana: To revive bilateral agreement with Italy

Government would revive the Bilateral Agreement on Migration to enable Ghanaian workers in the Agricultural Sector work in Italy. Nii Armah Ashietey, Minister of Employment and Labour Relations (MELR) disclosed this to the Ghana News Agency (GNA) in Accra, after the Italian Ambassador Laura Carpini paid a courtesy call on him. He said plans were advanced to finalize the said Bilateral Agreement, which would enable Ghanaians to work legally in Italy.
He said the two countries have also discussed the expansion of circular migration programme, which would enable more Ghanaians to work in the Agriculture sector in Italy.
The Minister said the government of Italy has continually supported Ghana in its strides to manage and organize Labour Migration, saying “major efforts have been made which could not be swept under the carpet.”

Ghana: Dangote cement to expand to other regions

The largest cement manufacturer in Africa, Dangote cement has initiated moves to expand to other regions in the country.
The cement manufacturer currently has a plant in Tema which produces about 800 tonnes of cement yearly. The company says it intends to build another plant in Tema and a couple of others in other regions in the country. The expansion will see a cement plant in the Western region.
Vice Chairman of Dangote Cement, Alhaji Tajudeen A Sijuade told Citi Business News the company is also contemplating building another in the Northern region.

LeapFrog raises over $200m for emerging markets

Private equity investor, LeapFrog Investments, has raised $204 million to invest in companies in Africa, South Asia and Southeast Asia, in its quest to provide financial services to emerging low-income individuals in the regions. In a fund-raising event, the emerging markets fund manager raised the initial capital from several of the world’s largest insurers, reinsurers, banks and asset managers including JPMorgan Chase & Co., MetLife, Prudential, Achmea, PartnerRe, Swiss Re, and XL Group in just eight months.
“The entry of these leading financial institutions indicates the increasing attractiveness of the emerging consumer segment—the millions of people eager to join the middle class but who are not there yet,” said Andrew Kuper, LeapFrog president and founder, in a statement.
According to Peter Scher, Executive Vice-President, JPMorgan Chase & Co, the partnership is an example of the company’s strategy. Scher added that the investment represents a “compelling investment opportunity to financially empower millions of people in historically underserved communities in Africa and Asia.”
LeapFrog also received backing from five of the world’s leading development finance institutions: CDC, DEG, the European Investment Bank, FMO and Oikocredit.

 

Related articles

• Nairobi tops in African hotel investments (businessdailyafrica.com)
• Africa’s Richest Man To Build $400 Million Cement Plant In Kenya (forbes.com)
• Ghana’s Darker Side (obolobo.com)
• Rwanda Tourist Visa ‘Exonoration’ for U.s. Citizens (madinghana.wordpress.com)
• Meet Dangote, Africa’s richest man (capitalfm.co.ke)
• Ghana considers establishing Climate Innovation Center (modernghana.com)
• Kenya opens its doors to more Nigerian investors (nigeriatalks.wordpress.com)
• Aliko Dangote seeks $400m investment in Kenya’s mining sector (businessdailyafrica.com)
• Nigeria partners Kenya in trade and investments (renewnaija.wordpress.com)
• Kenya gave us 46 wells, claims Nigerian oil minister (africareview.com)

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REPORT OF LAST WEEK (from 02/09/13 to 06/09/13)

by Dario Galluccio

This Blog is sponsored by http://www.reflexecogroup.com

Mozambique: Aggreko completes power expansion project

Temporary power supply solutions company Aggreko has completed the expansion of its gas-fired power plant at Gigawatt Park in Ressano Garcia, Mozambique. The expansion will add an additional 122 MW of capacity to the Ressano Garcia facility, bringing the total generation output from the plant to 232 MW and was formally inaugurated by the Mozambique Minister of Energy, The Honorable Salvador Namburete during a ceremony held, last week, at the project site.

Following the success of the first stage of Ressano Garcia, Aggreko announced in March 2013 that it had signed agreements with both EDM and NamPower, the Namibian power utility, to supply an additional 122 MW from the project.

Immediately, work began to more than double the generating capacity of the plant. As Aggreko designed and built the plant infrastructure to allow for modular increases in capacity, adding the additional power generation was achieved in just 12 weeks.

Tanzania: Government vows to support local investors

The government has pledged to support investment initiatives in the country to boost the country’s economy and well being of people; Deputy Permanent Secretary in the Ministry of Finance Prof. Adolf Mkenda said creating good investment climate would boost the economy.

“The Ministry of Finance understands the challenges facing the cement industry that includes poor infrastructure, competition and imports. We will continue working with other government ministries and agencies to ensure that the cement sector continues to play a pivotal role in economic development,” he said.

He also said the cement sector has for the last five years been growing at an average of nine per cent with its contribution to GDP increasing from 7.7 per cent in 2008 to 8.1 per cent in 2012 “Production grew from 2.4 million tonnes in 2011 to 3.42 million tonnes in 2012. If all the cement produced in the country is sold within in the country without exporting, demand will be met by 75 per cent,” he said.

Africa: Natural resources, oil to underwrite Chinese investment

Africa’s importance to China’s overseas investment agenda could become more significant as Beijing pursues a strategy of securing access to vital natural resources and takes big financial risks to get them. Last year, Chinese companies completed construction contracts worth US$40 billion in Africa, up 45 per cent over 2009, making up 35 per cent of all of China’s overseas contracts.

Zhang Zhiwei, chief China economist at Nomura in Hong Kong, reckons that number could jump as Beijing seeks to secure access to Africa’s oil resources. China became the world’s biggest net oil importer earlier this year, taking the position that had been held by the United States since the 1970s.

Chinese firms have invested billions of US dollars in the oil-rich nations of Angola and Sudan to secure access to oil. That means Beijing’s influence on the continent, relative to the US, is likely to grow. Africa, projected to grow 5 per cent this year, gets 1 per cent of US foreign direct investment.

The continent, home to six of the world’s 10 fastest-growing economies, has been China’s second-largest overseas contract market since 2009. The trend is likely continue, according to vice-minister of commerce, Li Jinzao, who said that China-Africa ties had reached a new historic high and would “enter the fast lane” this year. According to Li there were opportunities for deeper investment ties as African nations sought to upgrade their economic infrastructure.

Tanzania: New Project to view vision 2025 challenges

The Economic and Social Research Foundation (ESRF) and the United Nations Development Programme (UNDP) have launched a new project targeting to highlight the challenges Tanzania faces in realizing Vision 2025 goals. Titled ‘The Tanzania Human Development Report (THDR 2014),’ the project focuses on national perspectives on human development in addressing priority themes, emerging trends, opportunities and challenges the country encounters in reaching the Vision 2025 targets.

Ghana: Turkish trade expo finally in Accra

The fourth Turkish Trade Exhibition dubbed “Ghana Big 5 Show” has opened in Accra to showcase their products to their Ghanaian counterparts and create trade bridge between Ghana and Turkey. Over 40 Turkish companies and Ghanaian company like MBC Trading Company Limited, dealers in construction chemicals and Thetford Company, dealers in water flushing toilet begun a four-day exhibition.

The fair was to develop and broaden trade convergence between the two countries and ensure mutual protection of businesses: moreover the fair would showcase products including Turkish building and construction, Food and Agriculture, Fashion, Cleaning materials, iron and steel, mechanical appliances, electrical machinery and equipment.

Mr Seth Adjei Baah, President of Ghana Chamber of Commerce and Industry said the relationship between the two would boost trade and investment as well as lead to cultural and other exchanges. He said Ghana is a centre of peace and gateway to West Africa and that investing in the country would lead to increase results and assured them of the country’s readiness to collaborate and work with them during the exhibition.

Rwanda: French investors coming

A delegation of French investors will visit Rwanda early this month to assess business and investment opportunities, Chantal Umuraza, the chamber of industries executive director general, has said. She said the companies are interested in agro-processing, architecture, fabrication, IT and aviation sectors.Eusebe Muhikira, the head of trade and manufacturing department at the Rwanda Development Board, noted that Rwanda continues to attract foreign investments because of the business reform agenda started in 2009.

Rwanda is the third-best place to do business in Africa and ranks 52nd out 185 countries globally, according to the recent World Bank report. During the last quarter, the Rwanda Development Board (RDB) registered investments worth $1.2b (about Rwf800b), of these, 22 were foreign investments worth $406.9m and nine were joint ventures worth $338.1m.

Sub-Saharan Africa: Actis injects $278m

Private equity company, Actis, has injected an extra $278 million into “property developments” in Sub-Saharan Africa region. This latest capital injection takes the firm’s entire African capital spending in its funds to approximately $433 million.

Louis Deppe, a director at Actis, believes that there is a lot of activity in the “private equity space” particularly in the region. It is understood that the sub-Saharan Africa region, with the exception of South Africa, has insufficient investment in high profile estates (properties). JSE-listed funds have allegedly shown little attraction to injecting money into the continent. But the advancement of excellent stock by private equity companies is likely to attract bigger attention from the publicly traded sector.

Actis has two real estate development funds and it claims to be the only pan-emerging private equity firm. With $5 billion managed by 105 investment professionals, the company has put in money in 65 companies, employing 101,000 people.The private equity firm has invested $4 billion in emerging markets so far. The company has realised $2.2 billion from its investment since the company was started in 2004.

Ghana: SEC lauds IFC US$1bn domestic bond

Director-General of the Securities and Exchange Commission (SEC) Mr. Adu Anane Antwi says the International Finance Corporation’s (IFC) planned move to raise US$1bn from the domestic market will add to the local bourse’s growing credibility. “Once IFC starts issuing its bonds, then all the other institutions that issue bonds will begin to look at Ghana as a possible market, and that is good for us,” Mr. Anane Antwi said.

The IFC last week was given approval by the Ghana Stock Exchange (GSE) and the Securities and Exchange Commission (SEC) to issue regular cedi-denominated bonds worth up to US$1billion in Ghana’s market. “The consent from the Ghanaian authorities enables us to support deepening of the local capital markets and offer local-currency funding for priority sectors such as infrastructure,” IFC’s Vice President and Treasurer Jingdong Hua said in a statement.

The bonds will be sold to domestic and foreign institutional investors, and proceeds will be used to fund private sector projects in areas such as infrastructure and to increase access to finance for small- and medium-sized enterprises. The bonds are to be issued under the IFC’s Pan-African Domestic Medium-Term Note Programme that was launched last year, a statement from the IFC said.

The International Finance Corporation (IFC) last week successfully raised US$3.5billion from a five-year global bond to be used in lending support to private sector development. The five-year bond, according to the private arm of the World Bank Group, is its largest bond issue to date.

The bond issue generated an order book close to US$5billion and set the pricing benchmark for IFC’s 2014 fiscal year borrowing programme.

The IFC says it plans to raise US$16billion across a range of markets and currencies during its current fiscal year ending June 30, 2014. It also plans to issue debt in Botswana, Kenya, Namibia, Rwanda, South Africa, Uganda and Zambia under the programme.

Ghana: Diversify investment of heritage fund

A petroleum economist has suggested to the government and the Bank of Ghana to diversify the investment of the country’s heritage oil funds to keep some investments locally.

Currently, the country invests funds meant for future generations, known as the Heritage Funds, abroad in ‚ “secured international investment environment.” Mr John Gatsi, who is also a lecturer in Finance at the University of Cape Coast, said although investing abroad could shore up the country’s reserves, the government should have confidence in the local investment fund managers and keep some of the funds locally to improve liquidity and check risk.

Mr Gatsi lauded the country’s Petroleum Revenue Management law which, he said, laid out clear guidelines on spending, investing and transparent accounting for the proceeds the country got from its petroleum resources. He also praised the accountability clauses in the law and its reporting in the Budget Statement and Economic Policy of government, adding that while the Stabilisation and Heritage funds were a good creation in the law, the best form of protecting the future was in investing heavily in social and economic infrastructure.

On local content, the economic analyst said it was important for the government to leverage the policy and first equip small and medium scale enterprises to take advantage of it.

South Africa: Bank of China and Nedbank partner to boost trade

One of China’s big four state-owned lenders, Bank of China (BoC) and South Africa’s fourth biggest lender, Nedbank Group, have partnered to lift business between the two countries. The partnership will assist BoC clients that want to inject money in South Africa and the rest of the continent.

The alliance will include currency exchange between the two banks. It will also provide more backing services to Chinese firms with businesses in Africa through the banks’ networks. There will also be an increased collaboration when it comes to injecting capital in infrastructure projects in southern Africa.

Ghana: Finance Minister Says Plan to Halve Deficit Succeeding

Ghana’s plan to trim its budget deficit by half over three years by containing public-sector pay increases and raising taxes is showing initial signs of success, Finance Minister Seth Terkper said. The government is on track to achieve its deficit-reduction target of 9 percent of gross domestic production this year from 12.1 percent in 2012 when spending rose in the run-up to elections.

As the economy grows faster than the sub-Saharan African average [expansion in West Africa’s second-largest economy is forecast at 6.9 percent this year versus 4.8 percent for the continent south of Sahara] and the government “moderates” salary increases for public servants, the fiscal gap is forecast to narrow to 5 percent and 6 percent of GDP by 2015, he said.

The world’s second-largest cocoa exporter and an oil-producing nation since 2010 is implementing austerity measures including the reduction of fuel and utility subsidies, combined with higher revenue by adding at least four new taxes. The state wants to lower the wage bill to between 30 percent and 35 percent of tax income by 2015 from 72 percent last year.

India-Africa ties energised with oil and other products

India and Africa are coming closer to each other faster than most realize. In the last few years India has diversified its energy procurement to African countries. In 2005, India did not import any oil from African countries. Just eight years later, more than 20 per cent of India’s oil and gas imports are from Africa. While much is being traded, India has also begun investing in the energy sector in Africa.

State-run Oil and Natural Gas Corporation (ONGC) has just acquired a 10 per cent stake in an offshore gas field of Anadarko Petroleum Corp in Mozambique for $2.64 billion.It’s not just Mozambique. India has increased its purchase of oil and gas from a range of African countries. The biggest sellers of petroleum products to India from the continent are Nigeria, South Africa, Angola, Egypt, Algeria and Morocco.

Within Africa also, India’s overall economic relationship is changing. In 2001 Southern Africa accounted for nearly 60 per cent of exports to India while West Africa accounted for just above 16 per cent. Now West Africa is the largest supplier with a share of 40 per cent, while the share of Southern Africa is 24 per cent.

A recent report by Confederation of Indian Industry has an interesting nugget. Investment from Africa to India is growing. “Morocco and South Africa are the next largest investors in India with investments worth US$137 million and US$112 million, respectively.While the figures may not appear high, this is a beginning of an important development. The growing economic interdependence of India and African countries will add confidence to their dealings with the rest of the world.

Ghana: Will take advantage of Japan’s $32b for Africa

The Minister of Energy and Petroleum, Emmanuel Armah Kofi-Buah, has disclosed Ghana’s willingness to take advantage of the Japanese government’s proposed $32billion intended to support developing economies in Africa in areas of infrastructure development and energy to improve living standards in the region.Hon Kofi-Buah who made the disclosure during a courtesy call on him by delegation from Sojitz Corporation, a Japanese company undertaking the $125 million seawater desalination project in Nungua, Accra to discuss progress of the project and other investments opportunities in the Energy sector, noted that Ghana’s excellent relationship with Japan could be further strengthened with increase investments.

The Teshie project, which will begin commercial operations in 2014, is expected to supply 60,000 m3 of drinking water to about 600,000 people in Teshie and surrounding communities. The desalinated water will be sold to Ghana Water Company Limited (GWCL) under a long term water sales contract of 25 years to ensure stable provision of drinking water on a long-term basis in the capital. The project is the first desalination project in sub-Saharan Africa, and also the first investment by a Japanese corporation in Africa.

Ghana: To consolidate its middle-income status with bonds

Ghana’s Finance Minister Seth Terkper says it is prudent to finance the capital component of the national budget with long-term bonds as the country consolidates its middle-income status. According to the Finance Minister, it is important for the country to develop its local capital market more especially to mobilize funds to finance the infrastructural gaps which constrains the development efforts of Ghana.

According to the African Development Bank‘s Financial Markets Initiative, Africa as a whole requires about $20 billion in infrastructure investment per year which can only be sustainably financed through long-term bonds. In Ghana alone, Mr Terkper says “our estimation is that the required financing gap is about $1.2 billion a year”.

Mr Terkper argues that a well-developed local bond market is critical in Government’s ability to mobilize the necessary funds to support capital expenditures. He added that such markets are necessary for enhanced financial stability and better integration in the global financial landscape.

Liberia: German investment encouraged

Highlighting Liberia’s numerous challenges rating from youth unemployment to lack of capacity and infrastructure amid vast natural resources, President Ellen Johnson Sirleaf has told newly accredited German Ambassador to Liberia, Mr. Ralph Timmermann that the country encourages German Private Sector to take a more active role as Liberia aims to manage its own resources efficiently. The Liberian Chief Executive said government’s aim was to grow the private sector to be able to manage the country’s resources efficiently to enable government support its own endowment and development agenda.

In a interview with journalists at the Foreign Ministry, Ambassador Timmermann said Liberia has many opportunities for German companies, especially where Liberia is a country rich in natural resources couple with infrastructure that has to be built.

Africa: Global Competitiveness Index – Mauritius the most competitive economy

Mauritius moved up nine places this year out-pacing South Africa in the Global Competitiveness Report 2013-2014, as the most competitive economy in Africa. The country benefits from relatively strong and transparent public institutions with clear property rights, strong judicial independence, and an efficient government. Financial markets also deepened based on the improved access to different modes of financing and financial services.

Mauritius which ranked 45th globally is followed by South Africa (53rd), Rwanda (66th), Botswana (74th) and Morocco (77th) – as the most competitive economy in Africa. Seychelles, Tunisia, Zambia, Kenya, Algeria, Libya, Gabon, Senegal, Ghana, Cameroon and Gambia ranks 80, 83, 93,96,100,108, 112, 113,114,115 and 116th positions respectively.

Although the report indicated that great efforts need to be made to improve Africa’s competitiveness, it says Sub-Saharan Africa continues its impressive growth rate of close to 5 percent in 2012, providing something of a silver lining in an otherwise uncertain global economy.

Ghana: Bank of Ghana rejects cedi pessimism

The Bank of Ghana (BoG) says it has substantial buffers to defend the cedi and “completely disagrees” with a forecast that the currency will depreciate by a further 10 percent against the dollar by year-end.

Reacting to the grim forecast, which was made by French bank Societe Generale SA on August 20, the BoG’s Head of Treasury, Adams Nyinaku, said the Central Bank expects to accumulate US$6billion of foreign exchange reserves by year-end, which will maintain the cedi’s stability. “Through the Eurobond, we increased the reserves to US$5.8billion; and later this month Cocobod will bring in US$1.2billion through its syndicated loan. These inflows will make up for the decline in commodity prices,” Mr. Nyinaku told the B&FT in an interview.

Nigeria: Dangote gets $3.3bn loan from 12 banks to build refinery

Nigeria’s diversified industrial giant, Dangote Industries, said it has won a $3.3 billion “term loan facility” from 12 local and global lenders to build Nigeria’s biggest Petroleum Oil Refinery & Petrochemical/Fertilizer Plants. According to Dangote, the factories will create about 9500 direct and 25 000 indirect posts.

These plants will cut the existing volumes of refined fuel that are imported by about half.

In total, the projects will cost $9 billion, comprising $3 billion equity and a $6billiion loan.

The $3.3 billion deal struck with the banks is the initial consignment of loans made available to Dangote. It is a “term loan facility” backed by a group of 12 local and global lenders.

The first loan facility was co-ordinated jointly by Standard Chartered, the global co-ordinator, and Nigeria’s Guaranty Trust Bank, the local co-ordinator.

The 2.8 million tonnes of urea that will be made at these factories will be directed into developing the Nigerian agriculture sector. The petrochemical plant will make polypropylene which is a usual element of many plastic and fabric products. Aliko Dangote, the president of Dangote Group, said these factories would showcase Africa as maker of refined oil products and fertiliser.

Ghana: Borrowing reduced to 25 years

Ghana cannot borrow long term funds which are more than 25 years. This is because of the country’s middle income status since 2009. Ghana’s economic growth of about 8.7 percent in 2008 culminated in the country’s middle income status. Prior to that, the country was borrowing long term funds of up to 40 years from the World Bank and other institutions. Finance Minister, Seth Tekper, said the country will no longer borrow short term funds for capital projects of five years or more. He reiterated that government will be returning to the international bond market to raise long term funds to finance capital projects.

Meanwhile, 16.5 million dollars of the 750 million dollar Eurobond listed on the Ghana Stock Exchange is held by local investors. Mr. Tekper said “the need to develop the capital market in Ghana cannot be overemphasized. More especially, the wide infrastructural gaps which constraints our developments efforts as a country can only be closed when we tap into long-term financing options such as the capital markets, both domestic and foreign.”

Ghana: Government sure of investments

The government has expressed confidence that economic activities and investment will soar in the country with the resolution of the election petition.

A deputy minister of Information and Media Relations,Mr Ibrahim Murtala Muhammed, said the election petition resulted in uncertainty as many investors were holding on to their investment. He was optimistic that the confidence of investors would be boosted in the economy after the Supreme Court had upheld the validity of President John Dramani Mahama’s election in the 2012 presidential polls.

The deputy minister also said with the completion of the election petition, the government had now focused on implementing its programmes and policies. The programmes would be geared towards creating jobs and improving the country’s socio- economic development.

Africa: IFC investment in Sub-Saharan Africa hits $5.3 billion

International Finance Corporation (IFC), a member of the World Bank Group , says its investments in sub-Saharan Africa has hit a record $5.3 billion. This was acknowledged in its year ending financials, which showed it carried out advisory services projects worth $65 million in Sub-Saharan Africa and committed funds towards supporting the upgrades of infrastructure, health and agribusiness. According to an official statement, the investment body offered $3.5 billion from its own account, while it spearheaded the mobilization of $1.8 billion from other investors.

“This has been a record year for us,” said IFC director for eastern and southern Africa Oumar Seydi.

The Washington-based institution believes such financial offerings will further enhance the development of vital sectors key to the growth of several economies across Africa. IFC strategically focuses its investment in areas where it makes the most difference, and as such turned its attention to Africa by investing in developmental projects to stimulate economic growth in nations mostly plagued with poor living standards.

Kenya: IFC has invested 39 Billion in Kenya

The International Finance Corporation invested more than Sh39.6 billion ($456m) in Kenya in the year to June 2013.

IFC, the private development lending arm of the World Bank, put its money in energy projects, infrastructure and in the financial markets where it has partnered with 18 Kenyan banks to offer financial support to small and medium enterprises. IFC loaned Sh3.9 billion to Kenya Power to expand its network to reach over half a million new households by 2014. It has also invested in Gulf Power, Lamu Wind and made an equity investment in AAR to help it upscale operations in Kenya, Uganda and Tanzania.

Ethiopia: Turkey to set up an industrial zone in Addis Ababa

Turkey is preparing to create a Turkish industrial zone in Ethiopia’s capital, Addis Ababa, as part of its African policy which started in 2005 and has been showing marked development of its business assets. Turkish Foreign Minister Ahmet Davutoglu said that the Ethiopian prime minister had proposed the assignment of some land to establish a Turkish industrial zone in Addis Ababa, and that Turkey hopes to implement this plan.

Commenting on the new diplomatic steps, Davutoglu stated that Turkey has come a long way in the last ten years. Davutoglu explained that a Turkish firm invested $50 million in Ethiopia in 2005 while there are now 341 Turkish companies with a total investment of $3 billion in the country.

The Turkish foreign minister also mentioned the results of the Turkish government’s public diplomacy in Africa. “The amount of Turkish aid to the African continent, particularly to Somalia, has reached $750 million. If we hadn’t spent billions of dollars in public diplomacy and activity, we wouldn’t have the positive image and perception that we got from our humanitarian aid in Somalia,” Davutoglu said, reiterating that Turkey is reaping the rewards of its humanitarian foreign policy.

In the African continent, there are 30 offices of the Turkish Cooperation and Development Agency (TİKA) and 25 trade offices of the under secretariat for Foreign Trade, aiming to strengthen economic and bilateral relations between the two countries. The number of Turkish ambassadors in Africa has risen to 34 from 12 in 2005. Turkey has a Free Trade Agreement (FTA) with four African countries, as well as agreements to prevent double taxation and support mutual investments, and Turkey has also established a business council with 17 African countries.

Kenya: Eurobond advisors to be known in two weeks

The lead transaction advisors for the country’s first Eurobond will be known within the next one or two weeks. Cabinet Secretary Henry Rotich said once the advisors have been picked, it will take another two months to prepare all the document terms before the roadshows to market the issue kicks off.

Rotich said it has not been decided how much will be issued but it will be between Sh87 billion ($1 billion) and Sh174 billion ($2 billion).

The government is banking on the peaceful election early this year and favourable credit rating to issue the international bond for infrastructure projects.

Ghana: Consumers saved from possible fuel increase

Consumers of petroleum products have been saved from paying extra cost on fuel as government in the most recent price review has absorbed an increase in the product. This is the second time in the row that government is taking up the increased cost since the last increment at the beginning of August. These subsidies, however worsens government’s indebtedness to the Bulk Oil Distribution Companies, an impasse yet unresolved.

The National Petroleum Authority (NPA) in its most recent price review for the first half of this month, maintained prices of all petroleum products except industrial kerosene which increased marginally by 1.6%.

Petrol is being subsidised at 3% and Diesel less than 1%. Domestic kerosene continues to be the most highly subsidised, with government taking up to 42% of the cost. This was followed by Premix which is subsidised up to 19%.

Nigeria: UBA to invest $2 Billion in Africa’s power projects

CEO of United Bank for Africa (UBA), Phillips Oduoza, has revealed that the bank plans to invest an additional $2 billion into power projects across the continent over the next three years, aside the $700 million it has invested in Nigeria’s power sector this year. Of the proposed $2 billion, Oduoza said UBA will earmark about $1.2 billion to help Nigeria put an end to its chronic power shortages.

State-owned Power Holding Company of Nigeria has been broken up into 11 generation companies and six distribution companies, all being sold separately to private consortia, for about $2.5 billion.

Since Nigeria embarked on its power transformation projects, banks in the country have contributed over 70 percent (about N280 billion) of the money needed by investors for the 14 successor companies to the Power Holding Company of Nigeria. According to reports, about N400 billion ($2.4 billion) was realised by the Federal Government (FG) in the power sector privatisation project.

Nigeria: Arik operations inject U.S.$10 Billion annually into economy

Lloyds, world’s renowned insurance organisation, has said Arik Air realises about $10 billion annually from its operations for Nigeria’s economy

Arik last year engaged the services of Lloyds to assess its assets and also audit its transactions to know the expanse of its business and its worth. Lloyd in its report said with a fleet of 24 new generation aircraft, 43,000 flights per annum, airlifting over 2.4 million passengers in all its destinations in 2012, the airline injects $10 billion. The report stated the amount was inclusive of banking services and charges; the money expended on fuel, food and other supplies, aeronautical and non-aeronautical services; payment of salaries to over 2,800 employees, bills on hotel services, expenditure on training of indigenous pilots, engineers, cabin crew and other services.

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REPORT OF LAST WEEK (from 19/08/13 to 23/08/13)
by Dario Galluccio – This Blog is sponsored by http://www.reflexecogroup.com

Ghana: Non-traditional export to hit 5.0 billion dollars
The Ministry of Trade and Industry (MOTI) is to increase the country’s non-traditional export from the current export value of 2.64 billion dollars to 5.0 billion dollars by 2017. This will enhance the Gross Domestic Product to increase the national income. The country also aims at generating considerable number of jobs and incomes, which will be translated into improved standard of living and welfare of the people to consolidate the middle-income status.
Mr Gerald Nyarko-Mensah, Director of Export Trade of MOTI said the strategy formed part of the national strategy for the non-traditional export sector from 2013 to 2017.
He said the country needs an investment capital of 600 million dollars to implement the National Export Strategy document, which among other things, would build the capacities of the Ghana Export Promotion Authority and the Metropolitan, Municipal and District Assemblies to enable the country achieve the goal. He also said the country would no longer depend solely on the export commodities but would over the period invest in fresh and processed fish, vegetable oils, root crops, grains and legumes, natural rubber and products of the creative arts.
Mr Nyarko-Mensah said the strategy would put Ghana on the global map as a world class exporter of competitive products and services to reduce poverty promote sustainable environmental development and improve the balance in spatial and regional development. He indicated that the strategy would strengthen and resource export development related institutions to ensure that the export culture is imbibed nationwide so that every district would be able to have at least one significant commercial viable agro-based export product.

Ghana: World Bank says economy is expected to grow
Mr. Jean Phillipe Prosper, the Vice-President of the International Finance Corporation for sub-Saharan Africa, Latin America and the Caribbean, says the current glitch in government’s finances is only temporary as the country’s economy is expected to continue its growth in the coming months. Government is aiming to cut the fiscal deficit from 12 percent of Gross Domestic Product in 2012 to 9 percent in 2013, through a combination of revenue and expenditure measures.
“Africa is turning heads around the world, while developed countries still find their footing after a devastating crisis and emerging markets in other parts of the world face new challenges after years of torrid growth. Ghana is leading the way. Ghana’s growth in the first decade of this century averaged more than six percent. Today that growth is even higher and expected to continue,” he said.
The World Bank has provided about US$10billion in funding to the government of Ghana since it joined the Group in 1957; with most of the funds coming from the Bank’s facility for the world’s poorest nations — the International Development Association (IDA). About US$8billion of the total funding came as grants and interest-free credits to the government.

Kenya: President Kenyatta arrives in China on first state visit
President Uhuru Kenyatta arrived in Beijing on Sunday morning on his first State visit to China, which will focus on growing Kenya’s business and investment with the East. African ambassadors accredited to China greeted President Kenyatta and First Lady Margaret Kenyatta on arrival at Beijing Capital International Airport. They told him Kenya’s agenda of seeking transformational projects in infrastructure, technology, agribusiness and finance resonated with the continent. Discussions this week with Chinese President Xi Jinping and other government officials, as well as the China business community will focus on investments mainly in infrastructure, energy, technology and protecting Kenya’s wildlife. President Kenyatta will also press for greater market access for Kenyan exports.
He said his visit would cement and deepen the strategic partnership between Kenya and China.

East Africa: China tops Kenya’s FDI sources
China has become Kenya’s biggest FDI source with 474 million U. S. dollars invested in the East African country, as a result of the development of bilateral trade and economic cooperation, according to Chinese Ambassador to Kenya Liu Guangyuan.
Statistics from the Chinese Embassy in Nairobi show that the bilateral trade has boomed in recent years with an annual surge of 30 percent to 2.84 billion U. S. dollars. China has become the second largest trade partner to Kenya.
Meanwhile, Kenya has become more and more popular with Chinese tourists, whose arrivals hit 40,000 in 2012 and are expected even higher in years to come.

Ghana ranked 10th export country to China
Ghana has been ranked second after Nigeria as an ECOWAS country whose exports is in higher demand by China. It was however ranked 10th among sub-Sahara African countries that export to China.
Angola, South Africa, Congo, DR Congo and Zambia were the top five countries that China imported from. The rest were Sudan, Equatorial Guinea, Nigeria, Cameroon and Ghana.
According to Ecobank Research, sub-Saharan Africa has emerged as China’s biggest bilateral trade partner. The export trade rose to $1.2 billion last year, up from $945 billion in 2008.
Ghana’s exports to China reduced from 2008 to 2012. The country mainly exports minerals and cocoa to one of the fastest growing economies in the world. China has increased its investments in Africa in mining, energy, construction and manufacturing. However, there is an increasing move towards investments in the services sector particularly finance and tourism.

Ethiopia hails Dangote’s investment in cement plant
Nigeria’s Dangote Group has seen rapid expansion across the continent and has received yet another commendation, this time by the Ethiopian government, after the establishment of a new cement plant in the East African country.
The commendation, conveyed through a letter, acclaimed the effort of the President of the conglomerate, Aliko Dangote and promised to provide the enabling atmosphere for the success of the venture.
Dangote Cement had launched a 2.5 million metric tonnes per annum plant in Mugher, Adaberga District in Ethiopia with a pledge by the company to ensure that it was completed on schedule.
Dangote, Africa’s richest man, has pledged to spend up to $15 billion pursuing investment opportunities around the continent in the next 4-5 years. He earlier revealed that his company has invested approximately $8 billion in an oil refinery and another $2 billion in fertilizer in Nigeria alone, aside other billion dollar investments outside the country.

Nigeria: Apex Bank launches $1.2m MSME fund
The central bank of Nigeria has launched a N220 billion ($1.2 million) Micro, Small and Medium Enterprise (MSME) development Fund to fill the vacuum accessed in the small business sub-sector. The Fund, which would be given to Micro Finance Banks (MFBs) and Micro Finance Institutions (MFIs) to strengthen their operations (the credit component, the guarantee component and the refinancing component for the sector to work) will provide wholesale funding requirements in their operations and ensure that the un-served and under-served clients in Micro, Small and Medium Enterprises (MSMEs) sub-sector are now covered.
The fund was set up in accordance to Section 6.10 of the revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria which stipulates that “a Microfinance Development Fund shall be set up, primarily to provide for the wholesale funding requirements of MFBs/MFIs.”
The development fund will be available for disbursement as from next year. 60 percent of the fund has been earmarked for the provision of financial services to women entrepreneurs. This is as a result of the challenges they faced in accessing financial services in Nigeria.
Special consideration will also be given to institutions that will provide financial services to graduates of the CBN’s Entrepreneurship Development Centers (EDCs).

Kenya: from nowhere plans East Africa’s first Oil exports
Kenya is headed to become the first oil exporter in East Africa, moving in less than five years from being a have-not nation to the regional leader in cutting reliance on energy suppliers such as Royal Dutch Shell Plc.
After Tullow Oil Plc (TLW) discovered oil last year, Kenya is set to start shipments in 2016, overtaking neighboring Uganda, where Tullow found crude more than seven years ago. The U.K. explorer plans to start pumping in Kenya as soon as next year, Chief Operating Officer Paul McDade said in an interview. Kenya’s deposits may top 10 billion barrels, according to the company, more than three times the U.K.’s remaining reserves.
Oil will allow Kenya to “diversify export earnings and act as a catalyst for infrastructural spending, especially on the transport network,” Phumulele Mbiyo, regional head of macroeconomic research at Nairobi-based CfC Stanbic Bank Ltd., a unit of Standard Bank Group Ltd., said . “The shilling is expected to benefit from inflows of foreign exchange and reduced spending on fuel imports.”

Sierra Leone: Diamond exports sees 43% increase in H1
African diamond exporter, Sierra Leone says it shipped out diamonds worth $102 million in the first half (H1) of the year, a 43 percent rise as compared to the $71 million gained from exports during the same period last year. According to the country’s National Mineral Agency (NMA), the increase – which provided the government with a tax windfall in excess of $5 million – was largely influenced by the improved level of productivity from its major diamond miner, Koidu Holdings and further highlights the growing advancement in channeling diamonds through the government.
“At the end of the first half of 2013, exports exceeded those of 2012 by 42.95 percent, an improvement of $30.71 million,” Ibrahim Mohmed, who oversees the diamond sector at the NMA, told. “The total diamonds exported amounted to 331,471 carats valued at $102 million,” he added.

Kenya: International acquisition of local firms profit entrepreneurs
Recent acquisition of Kenyan companies by foreign multinationals will provide multi-billion-dollar windfalls for local entrepreneurs, experts reveal.
Findings suggests that several billionaire entrepreneurs are selling their stakes in local companies to foreign firms eager to tap into the East African market and have a preference for acquisition as a faster and cost efficient medium of entry into the region.
According to Business Daily, sporadic deals in the past year have attracted multinationals from across Africa, Asia and Europe with concluded acquisitions involving firms such as Fina Bank, Mercantile Insurance, Kenya Data Networks (KDN) and Swift global. Other potential buyout deals include that of AccessKenya, Scangroup, KenolKobil, CMC Holdings, and Resolution Insurance.
Analysts have noted that most agreements are aimed at generating capital for cash-strapped firms or at providing expertise in resource and operational management to ensure sustainable business development for the growing economy.

Ghana: Trade between Ghana-Germany is pegged at €1.25b for 2013
Trade between Ghana and Germany currently stands at €1.25 billion as at the end of March 2013. This was made known by President John Mahama last week when he hosted the outgoing German Ambassador to Ghana, Dr. Renate Schimkoreit.
Germany is one of Ghana’s biggest trading partners in the European Union.
According to President Mahama, Germany has given Ghana €132 million out of the total portfolio of €184 million support pledge it made for the period between 2012 and 2015, reports the Ghana News Agency.
Germany’s funding in Ghana has been in major areas such as renewable energy, health, agriculture, land administration project among others.

Nigeria: To Sign $3.7bn coal project deal with Chinese firm
Nigeria’s president, Goodluck Jonathan says nothing stops the country from exploiting its abundant coal reserves for quality power generation if properly harnessed.
“Nigeria is endowed with abundant coal reserves of the required quality necessary for power generation. And so there is no reason why we should not exploit that sector.”
Nigeria’s coal reserve is put at about 360 metric tonnes.
The president also stressed on the importance of the solid mineral sector and the need to harness it in order to create jobs, wealth and increase the foreign direct investments in the economy.
During the workshop, HTG-Pacific Energy Consortium and Ministry of Mines and Steel Development signed a $3.7 billion deal for a coal to power project at Ezimo Coal Block in Enugu State and a 1,000 megawatts coal power generating plant. The MoU represents the first step to building plants that will generate additional 1200 mega watts of electricity to the national grid.
Nigeria’s Minister of Power, Prof. Chinedu Nebo, said a greater part of the funds required to carry out the project will be borrowed from foreign banks.

Africa: Standard Bank will open offices in Ethiopia, Ivory Coast 
Standard Bank, Africa’s biggest lender by assets, is poised to open up representative offices in Ethiopia and the Ivory Coast, it merged earlier this week. Banks first open representative offices in the targeted countries before setting up shop and opening up a branch network offering a suite of their products.
By the time Standard Bank decides to go full steam ahead and start full-suited operations in the two countries, the lender would have increased its African operations to 20. It currently has operations in 18 African countries.
The lender is paying more attention to Africa because it is planning to take advantage of opportunities that will be proffered by the growing middle class in the continent. Standard Bank has disposed of its operations in the United Kingdom, Russia and Argentina to focus on the African continent.
In the past couple of years, Ethiopia has been seen as having great prospects for foreign banks. This is in view of the fact that it is Africa’s second most populous country.

Ghana: DHL to expand in Africa
Leading international express and logistics company, DHL Express has stated that it will continue to invest in Sub-Saharan Africa. To strengthen its 32-year relationship with Ghana, DHL’s Sub-Saharan Africa Managing Director, Charles Brewer last Friday met key stakeholders, customers, employees and the media to explain the company’s future direction.
“Despite the current global economic uncertainty, DHL expects the African region to deliver,” said Mr. Brewer.
He also said “As we see the continent ‘surge’ as a result of sector investment, increased consumer spending and economic activity, the future is still bright for the continent. Ghana is an attractive market for us and with the GDP growth rate 7 percent presents a major opportunity. The opportunity for us is to expand our footprint within the country and service semi-urban and rural areas so that anyone-from a student to a small business- can access our network and the over 220 countries and destinations that we serve.”

Ghana: 1st Made in Ghana exhibition in Nigeria
The first ever Made in Ghana Solo Exhibition to be hosted in Nigeria, which is part of efforts aimed at strengthening the bi-lateral trade relations between Ghana and Nigeria as well as introducing Ghanaian manufacturers to the largest market in Africa was declared launched in Accra by the President of Ghana Manufacturers Association, Nana Owusu Opare. The press briefing which was held in the boardroom of First Atlantic Bank; the major sponsor of the program, was said to be the first solo exhibition platform that will be strictly for Ghanaians to showcase their products in Nigeria.
First Made in Ghana Solo Exhibition which is under the theme: “Promoting Ghana’s Export Potentials To West Africa’s Largest Market” was put together by Vintage Visions, Ghana.
The exhibition is expected to take place at the LTV. Ikeja, Lagos, from 2nd of September to 7th.

Nigeria: Nigerians abroad, biggest investors
Nigerians abroad have been identified as the biggest investors into the country’s economy, which is seen as one of the fastest growing in Africa.
The chairman, House of Representatives Committee on Diaspora, Hon. Abike Dabiri-Erewa disclosed this at the just concluded Nigerian Diaspora Direct Investment Summit in London where she urged the Nigerian government to ensure that Nigerians abroad are given the necessary support needed to have a smooth inter-business transactions in their various countries of abode.
Moreover also the Secretary to the Government of the Federation (SGF), Senator Anyim Pius Anyim, has lauded the contributions of Nigerians abroad to national development, saying, ” Remittances of over $21 billion in the last one year, appears the highest so far in Africa.

Kenya: Kidero signs Sh90 billion deal with investors
Nairobi Governor Evans Kidero has signed deals worth Sh90billion with Chinese investors to be used for infrastructure development. Speaking in China yesterday, Kidero said that he had held a fruitful meeting with the executive chairman of China Investment Bank, on the prospects of funding the urban re-generation of Eastlands housing estates, Nairobi’s transport system and nine transport corridors to open up traffic in the county.
“The China Investment Bank is willing to invest in Nairobi county. Its chairman Hu Huai Bang will soon visit Kenya,” he said. He said some Chinese investors want to fund the second phase of the Digital Traffic and Security Control where cameras will be installed in 253 major junctions in Nairobi from Mowlem area in Embakasi West to Karen. We also got commitments for the health care sector where statistics show that there are 7.6 million hospital visits per year in Nairobi while there are 83 hospitals, clinics and dispensaries. This will be upgraded to digital imaging systems,” Kidero said.

Nigeria: MoneyGram, eTranzact sign money transfer deal
International money transfer company, MoneyGram, has finalised agreements with electronic transaction and payment platform, eTranzact’s PocketMoni, that will allow accessibility to Nigerian mobile users all over the world.
PocketMoni – which works on all GSM networks the partnership – would enable customers carry out their transactions with ease, without having to face the often “touted inconvenience” of funds transfer.
The companies said the deal which would allow 24/7 access to money transfer transactions is a step in building a comprehensive suite of mobile services.
The Regional Director for North West Africa MoneyGram International, Mr Francois Peyret noted that the partnership was another effort aimed at driving the cashless policy directive of the Central Bank of Nigeria (CBN).

Ghana: Reserve stands at $5.7billion
Dr Kofi Wampah, the Governor of the Bank of Ghana (BoG), has announced that Ghana’s external reserves stood at $5.7 billion as of August 20, 2013.
This translates into more than three months of import cover, meaning that the country’s external reserves can pay for more than three months of imports.
Dr Wampah added that the current reserve level was an appreciation of the one recorded last month; in july the country’s external reserves were $4.9 billion but rose to the current level due to the various gains chalked up in the economy over the period.
The governor attributed those gains to the numerous interventions the government introduced into the economy, such as the Eurobond and improvement in the energy sector.

Ghana: To save $279 million from crude oil revenue
Ghana has been able to save close to $279 million from revenue earned from crude oil export for the first half of 2013. This is contained in the Ghana Petroleum Funds report on the country’s earnings from crude oil export since it started exporting crude.
According to the report, $77 million will be set aside for future generations in the Heritage Fund, while $202 million has accrued to the Stabilisation Fund to cushion the country in times of crude oil price volatility.

Africa: CDB invests $2.4 Billion in infrastructure projects
China Development Bank (CDB), the largest policy lender in the country, has invested over $2.4 billion in Africa’s infrastructure development, the bank’s president, Zheng Zhijie, has revealed.
According to the president, the bank, through its wholly owned subsidiary fund, China-Africa Development Fund, has financed several economy-enhancing projects in mineral resources development, power generation, agriculture and machinery manufacturing across 30 African countries, and has also offered loans worth a reported $18.9 billion.
With the economic crisis threatening Europe and parts of North America and a quest to find cost friendly markets for trading and business development, western countries have started turning their attention towards African nations, with predictions that the continent will be the next region to enjoy an economic boom. Top economic giants including the US, UK, Japan, Russia, France and Germany are all pushing for investment opportunities in the fast growing continent, but China seems to be leading the pile.
In 2009, China became Africa’s biggest trading partner, with trade deals from $10 billion in 2000 to over $200 billion this year, thereby outdoing the US.

Nigeria: IFC invests N60bn in infrastructure development
International Finance Corporation, IFC said it has invested 25 per cent, about N60 billion of its 2012 total investment in Nigeria on infrastructure. Vice President, Sub-Saharan Africa, Latin America and The Caribbean, Jean Philippe Prosper stated this in Lagos while interacting with news men during his visit to Nigeria.
He said that IFC has invested a total of $1.5bn in Nigeria within the organization’s last fiscal year that ended in June, 2013.
According to him, the infrastructure and natural resources sector got 25 per cent, about N60bn, while manufacturing and agribusiness got 25 per cent. The financial markets got N120bn about 50 per cent of the total investments.

Tanzania: Dar es Salaam Business prospects attract Singaporeans
Prospective investors from Singapore are in the country to explore business opportunities, thanks to President Jakaya Kikwete’s recent tour of the Asian nation. The visiting Singaporeans have expressed interest to invest particularly under the Export Processing Zones Authority (EPZA) managed Export Processing Zone (EPZ) and Special Economic Zone (SEZ) programmes.
The arrival of the strong business delegation from Singapore is linked to President Kikwete’s tour of Japan and Singapore early last June to lure prospective investors from the highly industrialised Asian nations.

Angola: To urge diversification amid stable oil prices
Angola, Africa’s largest oil producer after Nigeria, needs to cut its reliance on crude to buffer the economy as prices for the commodity are set to remain stable over the next three years, a central bank official said.
The economy is forecast to expand 6.5 percent this year and between 7 percent and 8 percent in 2014, while oil trades at about $106 a barrel, Antonio Andre Lopes, a vice-governor of the Banco Nacional de Angola, said. Crude oil makes up 97 percent of the country’s exports and 80 percent of tax revenue.
“The price of oil is a big threat so we need to diversify the economy to mitigate this,” Lopes said. “However, the economy is getting better and I think the oil price will be stable.”
The government is seeking to increase lending from banks to businesses in industries including construction, mining and agriculture as the southwest African country recovers from a 27-year civil war that ended in 2002.
Angola’s $116 billion economy is forecast by the World Bank to expand 7.2 percent this year. Crude oil has gained 12 percent in New York in the past six months and was trading as high as $104.72 a barrel today.

Ghana can generate power for West Africa
Alhaji Inusah Fuseini, Minister for Lands and Natural Resources says Ghana has the potential to establish power-generation plants to feed the West African sub-region.
He said investment in relatively cheap gas-fired power plants through gas that would be made available by the Ghana Gas Company ‘would significantly enhance the competitiveness of products of Ghanaian companies and facilitate the generation of the targeted 5,000KV by 2016 for export to countries in the sub-region.’
Alhaji Fuseini made the observation when Mr. Kimihiko Inaba, Executive Director of Japan External Trade Organization (JETRO) led a three-man South Africa-based team comprising himself, Mr. Yasuto Suzuki, Deputy General Manager of Toshiba and Mr. Nozomu Sasaki, General Manager of Mitsubishi Corporation to pay a courtesy call on the minister. The three-member JETRO delegation is currently in Ghana to explore investment opportunities particularly in the natural resource and power generation sectors in a bid to boost investment of Japanese companies in Ghana.

Ghana: BoG issues 7-year bond
The Bank of Ghana on Thursday, 22th of August, issued its first seven year Government of Ghana bond. Proceeds from the 100 million Ghana Cedi bond is expected to be used to settle maturing debts as well as finance some infrastructure projects. This is contained in the Government of Ghana’s Securities Calendar from July till the end of the year.
A total of 1.7 billion Ghana Cedis will be raised this month from short and long dated instruments. This will bring to a total of 14.7 billion Ghana Cedis of debt instruments raised by government this year.
The Central Bank will also issue a 600 million Ghana Cedis bond next month. Another seven year bond will be issued in November

Tanzania: Vodacom will invest $124m for network expansion
Tanzania’s largest mobile network operator, Vodacom, said it is investing 200 billion shillings ($124 million) to develop and grow its business in Tanzania, but complained that rising taxes could stifle the sector.
Vodacom spent 230 billion shilling ($142 million) last year to build over 890 network sites.
Vodacom hopes the service expansion will help pull more subscribers despite stiff competition from the likes of Airtel Tanzania, India’s Bharti Tigo Tanzania, Millicom International Cellular and Zantel.
Telecommunications is the fastest growing business sector in East Africa and the government is determined on getting a bigger share of revenues. However, taxation in East Africa’s second-largest economy had become difficult for mobile phone operators.

South Africa: Gold Fields acquires Barrick’s interests in Western Australia
JSE-listed gold miner, Gold Fields, said it had acquired Barrick Gold’s interests in Yilgam South Assets in Western Australia for $300 million. Gold Fields’ purchase of these assets will give the South African gold miner an extra 452.000 ounces in yearly gold production. The transaction will also offer the gold miner 2.6 million standby ounces for $115 an ounce and 1.9 million reserve ounces.
It has been disclosed that Gold Fields may pay for these assets in cash or partly in shares offered to Barrick Gold. If Gold Fields opts for cash payment for these assets, it may use its money generated in Australian operations. It may also use money from its bank facilities. And perhaps obtain funds from the capital markets.
The purchase is dependent on a number of conditions being met, one of them being the approval by the South African Reserve Bank for the transaction. The deal will have to get the blessing of Australia’s Federal Treasurer. Lastly, the Western Australian Minister for Mines will also have to put his signature to the transaction.
Barrick Gold is the world’s biggest gold producer which has been struggling in recent years.

Nigeria: Shekau’s death excites BRIC investors
According a report published in Forbes the death of Abubakar Shekau, the leader of the Boko Haram insurgency, is making foreign investors look favourably towards investing in Nigeria. Such investors are said to be frustrated by the low level of profit they are currently making from the BRIC nations of Brazil, India, Russia and China.
The report said success in cracking down on security threats in the Niger Delta is also changing the security situation for the better. And while terrorist disruption recedes, money keeps flowing into Nigeria.
In the last six months, U.S. corporations like Procter & Gamble PG -have committed at least $700 million to build new factories and agricultural facilities in the country while the Nigerian government itself announced a $1 billion fund to nurture the local software industry, which officials think can ultimately capture $20 billion a year from rivals like India.
Forbes also said Nigeria was one of the world’s four best-performing markets last year with a 35.45 per cent gain and is the biggest and most dynamic frontier economy in Africa, with a GDP at par with global capitals like Hong Kong and Singapore.
Moreover the Nigerian economy is growing at an annualised rate well above six per cent, faster than any of the top-tier emerging markets.

Ghana: First seven year bond oversubscribed by 170 percent
The country’s quest to raise funds for development through the issuing bonds has received massive interest from investors. The Government of Ghana through the Ministry of Finance and Economic Planning sold its first seven-year bond and it was over-subscribed by 170%.
Government received GH¢ 270 million Ghana cedi offers from local and foreign investors but took GH¢102 million cedis. It would be paying those who participated in the bids, an interest or a yield of 17.5%. Most of the bids that government is likely to accept are from local investors.
Proceeds from the bond, would be used to finance infrastructure projects and settle some maturing debts. Government is however expected to receive the money by next Monday, 26th of August. Some analyst says this would encourage some corporate institutions as well as government agencies like Volta River Authority (VRA) to issue long-term bonds to finance their operations.

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