BUSINESS - The African Mirror

Apr

2024

OPEC woos Namibia as African nation prepares to produce from 2030

THE OPEC+ oil producers group, having lost Angola and other players in recent years, is eyeing Namibia for possible membership as it sets up what could be Africa’s fourth-largest output by the next decade, an African industry official and sources told Reuters. TotalEnergies and Shell in recent years have made discoveries estimated at 2.6 billion barrels, setting the stage for the southern African country to plan production from about 2030. The initial focus for OPEC+ would be to see Namibia join its Charter of Cooperation, the sources said, a grouping that engages in longer-term dialogue about energy markets. Brazil joined the charter…

Apr

2024

By SETH ONYANGO, BIRD STORY AGENCY

Ethiopia looks to the Singapore model to lure startups in sweeping new reforms

BUSINESS

ETHIOPIA has unveiled sweeping reforms to support a burgeoning startup industry and turn the country into a leading incubator of entrepreneurs. Notable changes include slashing a 30% capital-gains tax on the transfer and issuance of shares, according to Brook Taye, Director-General of the Ethiopian Capital Market Authority. The move, combined with an allowance for startups to retain all foreign currency earned from service exports, is expected to boost investor confidence, as Prime Minister Abiy Ahmed opens up what was once a tightly controlled socialist economy. In recent years, the Eastern African nation has incubated several successful startups, such as Ride,…

Apr

2024

By BRETT SILBERG

Extremely cheap’ SA equities are getting cheaper

BUSINESS

MOMENTUM Investments believes South African equities are trading over one standard deviation cheaper relative to their average historical valuation. Momentum Investments portfolio manager Ronnie Bornman believes South African equities are ‘extremely cheap’ and have gotten cheaper. ‘No matter which way you look at it, South African equities or extremely cheap. They have been cheap for some time, and unfortunately, they have been getting cheaper throughout the first couple of months of this year,’ he added during a multi-asset roundtable. Hollard Investments CIO Ashveena Teeluckdharry-Khusial chaired the event, and Citywire South Africa hosted it in Cape Town on 19 March. ‘Relative…

Apr

2024

By MAKINI BRICE

US senators introduce bill to renew Africa trade pact through 2041

BUSINESS

A bipartisan group of senators has introduced a bill to renew the U.S. trade pact with sub-Saharan Africa ahead of its expiration next year, an aide to one of the senators said. The bill was introduced by Senators Chris Coons, a Democrat, and James Risch, top Republican on the Senate Foreign Relations Committee. A cross-party group of senators - Dick Durbin, Michael Bennet, Chris van Hollen, Todd Young and Mike Rounds - is co-sponsoring the bill. An aide to Coons said it was a high priority to reauthorize the African Growth and Opportunity Act (AGOA) this year. The bill, which…

Apr

2024

By The African Mirror

Senegal says oil, gas and mine contracts will be reworked if needed

BUSINESS

SENEGAL'S new Energy and Mines Minister said that the government would renegotiate oil, gas and mining contracts if necessary once a promised audit is completed. President Bassirou Diomaye Faye, who defeated the ruling coalition candidate in a landslide election victory last month, announced the audit after his inauguration on April 2, assuring investors they were still welcome in the West African country. In some of his first remarks since his appointment last week as energy and mines minister, Birame Souleye Diop said closer scrutiny of the sectors was high on the agenda for Senegal, which is due to start oil and gas…

Apr

2024

By SETH ONYANGO, BIRD STORY AGENCY

More African founders secure $1M+ Funding in new trend

BUSINESS

START-UPS in Africa are increasingly hauling in US$1 million or more in funding, even as the investment climate on the continent cools off. Data from Africa: The Big Deal, shows ventures raising over US$1 million thrive due to their bankability, suggesting a selective but keen interest from investors amidst a cautious investment backdrop. "While the amount raised quarterly is still at its lowest since Q4 2020, we can see that the number of ventures raising at least $1m during a quarter has started to bounce back in Q3 2023 and continued to do so consistently since," The Deal says. Investors…

Apr

2024

By KAI KODDENBROCK

CFA franc: conditions are ripe for replacement of the west African currency rooted in colonialism – expert

BUSINESS

AT no point in history has the CFA franc – the name of a colonial currency used in the West and Central African countries belonging to the franc zone – been closer to its demise. Senegal has overwhelmingly voted for leftwing Pastef candidate Bassirou Diomaye Faye (and his former party leader Ousmane Sonko) while the coup governments in Mali, Burkina Faso and Niger have been talking about leaving the CFA franc for some time. Senegal under outgoing president Macky Sall was a pillar of the longstanding French attempt to remain influential among its former colonies, often named “Francafrique”. Now newly…

Apr

2024

By The African Mirror

Australia’s Fortescue partners with OCP Group for green energy development in Morocco

BUSINESS

AUSTRALIA'S Fortescue said that it would form a joint venture with OCP Group to supply green hydrogen, ammonia and fertilizers to Morocco, Europe and international markets, as the iron ore miner looks to transform itself into a green energy superpower with a global footprint. Fortescue's equal partnership with the Moroccan fertilizer producer includes the potential development of manufacturing facilities and a research and development hub in Marrakesh. "The partners' objective is to supply green hydrogen and ammonia for use both as sources of green energy and in the manufacture of carbon-neutral and customized fertilizers," Fortescue said. The partners have also proposed…

Apr

2024

By CHIJIOKE OHUOCHA

Nigeria bars lenders from using FX-denominated collateral for naira loans

BUSINESS

NIGERIA'S central bank has barred commercial lenders from accepting foreign currency-denominated collateral to grant naira loans, a move that could protect the banking system against a strengthening of the local currency, it said on Monday. The regulator said in a circular that the practice it had observed of bank customers using foreign currency as collateral for naira loans was "prohibited". The central bank on Monday said it approved Eurobonds issued by the government or letters of credit issued by an offshore bank as eligible foreign currency collateral. It told lenders to wind down all loans currently secured with dollar-denominated collateral…

Apr

2024

By NQOBILE DLUDLA

Vivendi’s Canal+ makes mandatory buyout offer for South Africa’s MultiChoice

BUSINESS

FRENCH media group Vivendi's Canal+ made an all-cash mandatory offer to buy all the shares of South African broadcaster MultiChoice it does not already own for 35 billion rands ($1.9 billion), both companies said. That offer at 125 rands per share follows an indicative offer of 105 rands made by Canal+ on Feb. 1, which MultiChoice rejected as significantly undervaluing the company. The need to make a mandatory offer was triggered by Canal+, MultiChoice's biggest shareholder, subsequently raising its holding in the firm above the 35% threshold. Its new offer values MultiChoice, in which it now owns a 36.6% stake, at about 55 billion rand, according…