The October edition of our Africa newsletter focuses on infrastructure. Read on for a selection of some of the most interesting business news and articles from around the continent.
Infrastructure in Sub-Saharan Africa continues to play a major focus. Despite seeing an increase in investment, albeit in fewer larger projects, there remains a gap of $93 billion per year (44% for energy; 23% for water and sanitation; 20% for transport; 10% for ICTs; and 3% for irrigation). According to the World Bank, the largest deficit is in the power sector with consumption in the Sub-Saharan countries (population of 800mn) generating the same power as Spain (population of 45mn). Similar statistics exist in other sectors, for example, only 1/3 of Africans in rural areas live within 2km of an all-season road compared with 2/3 of the population in other developing regions.
Clearly huge opportunities exist for the private sector to help solve the infrastructure demand. Whilst public-private partnerships in Sub-Saharan Africa remain a relatively small market, with projects concentrated in only a few countries, a collaborative public-private approach can efficiently tackle the infra gap. There are a number of exciting initiatives and organisations (for example Africa50) which continue to promote PPPs, including the launch last month of a campaign by the New Partnership for Africa's Development (NEPAD) – please see articles below.
Our newsletter this month focusses on infrastructure - we hope you enjoy reading a selection of some of the most interesting business news and articles from around the continent. The Africa team at Addleshaw Goddard is always delighted to discuss investments in Africa and beyond.
Promoting and Protecting Investments in Africa
Also, please don't forget about our annual "Doing Business in Africa" event on 11 October where we are delighted to be presenting an engaging and thought-provoking panel discussion on Promoting and Protecting Investments in Africa. The key note speech will be delivered by Greg Hands MP (in his role as the Minister of State in the Department for International Trade) and will be followed by distinguished panellists from both the public and private sectors, who will provide insights on how African investment is both attracted, promoted and secured across the continent.
Get your slice of the U.S $45 Billion World Bank pie
The World Bank has urged South African companies to stake a claim to the $45 billion that the group has set aside for projects on the African continent. Speaking at a seminar on doing business with the World Bank on Friday, Executive Director of the World Bank Group representing Angola, Nigeria and South Africa, Bongi Kunene, urged local companies to make use of opportunities presented by the group.
Nigerian firm to invest in Ghanaian port project
A Nigerian firm, ARM-Harith Infrastructure Investment Limited, the manager of the ARM-Harith Infrastructure Fund has said it will partner other investors to provide equity capital for Prime Meridian Docks Ghana Limited. The ARMHIIL’s Accra-based Investment Director, Ernest Nyarko, said, “Another plus for us with this project is that its location in Takoradi is reasonably close to Aboadze where ARMHIF is an equity investor in the Amandi IPP, a l 92.4MW greenfield power generation plant that is currently under construction and scheduled to deliver power for supply in 2019.
Official Launch of Nepad's 5 Percent Agenda Initiative for Infrastructure Financing in Africa
The New Partnership for Africa's Development (NEPAD) - African Union's economic development programme - gathered international investors and CEO-level business leaders at the NASDAQ Stock Market today, 18th September, for the launch of its 5% Agenda campaign. According to the World Bank, the continent needs to spend $93 billion annually (44% for energy; 23% for water and sanitation; 20% for transport; 10% for ICTs; and 3% for irrigation) until 2020 to bridge its infrastructure gap, which is currently removing an estimated 2% of GDP growth every year.
Caterpillar launches BBBEE investment programme
The Minister of Trade and Industry, Dr Rob Davies will deliver a keynote address at the launch of mining and construction equipment manufacturer, Caterpillar’s Southern Africa’s Broad-Based Black Economic Empowerment (B-BBEE) Equity Equivalent Investment Programme (EEIP). “The programme is expected to contribute towards the achievement of enterprise creation and supplier development, foreign direct investment, accelerated growth and development of black rural women and youth, sustainable growth and development, human development with a focus on education and skills development, and infrastructure investment with an emphasis on developing the country’s research and development infrastructure,” says Davies.
Africa50 to issue up to sh324b to private projects
In 2016, Alain Ebobissé was appointed Chief Executive Officer Africa50, a Pan-African infrastructure investment platform capitalized by the African Development Bank, and about 25 African countries and two African Central Banks. The former Global Head for the World Bank Group’s Global Infrastructure Project Development Fund (“IFC InfraVentures”) spoke to our reporter about the progress of Africa50, and how the private and public sectors in Uganda can benefit and contribute to the initiative.
Gulf states to explore opportunities at Africa investment conference
More than 400 decision-makers, including government officials and business leaders, will meet in Dubai this week to discuss foreign investment opportunities in Africa during ALN’s (formerly Africa Legal Network) fourth Annual International Conference, “Africa: Bridging the Gulf” on 4-5 October at the Park Hyatt, Dubai, UAE. “The conference comes at an opportune time as new frontier markets are ripe with investment opportunities across the African continent, due to rapid urban growth, a rising middle class and increased globalisation".
East Africa Metals enters MoU for US$250 million to finance projects
In addition the deal between East Africa Metals and Luck Winner Investment includes a private placement of 52 100 000 units at a price of $0.26 per unit for aggregate gross proceeds of approximately C$13 550 000. Luck Winner Investment has also agreed to provide an unsecured loan to East Africa Metals in the amount of C$2 000 000.
Capitalworks launches $300m sub-Saharan Africa investment company
Independent alternative asset manager Capitalworks Group has launched Africa Capitalworks, an investment company that will deploy permanent equity capital in midmarket companies in strategically selected sectors across sub-Saharan Africa, but excluding South Africa.
- Business Council for Africa news and country spotlights
- RMI and Royal Investment Managers to acquire combined 30% stake in Ethos Private Equity (South Africa)
- Dangote confirms PPC acquisition rumor (South Africa)
- East Africa attracts $1.6 billion in foreign capital, with Kenya taking bulk
- Arise takes 12% stake in Equity Group Holdings (Kenya)
- HFC in talks with two banks to meet $91 million minimum capital requirement (Ghana)
- Telcos protest Uganda Telecoms taking over business
- US firms get more time on Obama power plan (Kenya)
- Central Bank of Nigeria releases $433 million for Anchor Borrowers’ Programme
- Old Mutual writes off $887 million in its Kenyan subsidiaries
- Hilton to open Ngong Road outlet in Dec (Kenya)
- Germany’s Allianz eyes 98% stake in Ensure Insurance for $35 million (Nigeria)
- Nigeria’s $282 million debut Sukuk offer oversubscribed by 6%
- Forex window records $1 billion transactions in one week as investor confidence rebounds (Nigeria)
- External reserves hit 31-month high to $33 billion (Nigeria)
Established 60 years ago, our extensive membership base consists of more than 400 companies ranging from different sectors that are committed to doing business on the continent. Through our 30 plus events each year and In-Country Representative network, BCA members benefit from unparalleled networking opportunities with prominent business leaders, high-level government officials and visionary entrepreneurs.
- The Eastern Africa Association Analysis and Country Spotlights
- G20 and World Trade
- G20 Summit
- Free Trade Deals
- African Economic Growth
- The Commonwealth
- EU Economic Partnership Agreement (EPA)
- Continental Free Trade Area (CFTA)
- The Economy
- The Economy
- The Economy
- The Economy
- South Sudan
For further information regarding the above please contact John Small.
The Eastern Africa Association (EAA) was established in 1964 on the initiative of a number of prominent, mainly British based companies with business interests in East Africa and it now has over 400 member companies from more than 25 different countries. The EAA aims to facilitate successful participation in the economic development of Eastern Africa by member companies. The EAA exists to support the business activities of its members in the countries covered by providing channels of communication and lobbying on common issues, either through the various diplomatic missions, the international financial institutions or directly with the respective national government.