BUSINESS - The African Mirror

Nov

22

2023

AfDB hybrid capital note could launch before end-November

BUSINESS

THE African Development Bank (AfDB) could launch its debut hybrid capital note, sized between $500 million and $1 billion, before the end of the month if market conditions are right, the bank's acting treasurer said. AfDB is set to become to first multilateral lender to issue a perpetual hybrid note - a deeply subordinated, debt-like equity instrument that will have a lower credit rating than the lender's AAA-rated bonds. "We've been ready to issue since the end of September... Unfortunately, market conditions have not been ideal and for us it's very important to get this transaction done right. It sets…

Nov

22

2023

By The African Mirror

World Bank sees $12 billion support to Kenya over next 3 years

BUSINESS

THE World Bank said that it foresaw $12 billion of support to Kenya over the next three years, potentially a major boost to the East African country's strained finances. The bank said in a statement that the total amount was subject to the approval of its executive directors and other factors that could influence its lending capacity. Kenya's public finances have been pressured by the legacy of the COVID-19 pandemic and frequent climate change-induced droughts. "The World Bank is fully committed to supporting Kenya in its journey to become an upper-middle-income country by 2030," the statement said. "Subject to the…

Nov

21

2023

By RACHEL SAVAGE and KARIN STROHECKER

Zambia dealt major setback as official creditors object to bond deal

BUSINESS

ZAMBIA suffered a major setback in its debt restructuring efforts after the government on Monday said a revised deal to rework $3 billion of Eurobonds could not be implemented at this time due to objections from official creditors, including China. Zambia and the country's official creditor committee (OCC) and the International Monetary Fund (IMF) had been at odds over whether the initial deal struck with a group of bondholders in late October offered comparable debt relief from bilateral as well as commercial lenders. The IMF approved a tweaked deal but official creditors again rejected it, Zambia said. "The OCC, through its co-chairs, concluded…

Nov

21

2023

By The African Mirror

S.Africa’s Astral Foods swings to loss on $109 mln electricity, bird flu hit

BUSINESS

SOUTH Africa's biggest poultry producer Astral Foods swung to a full-year loss, as an ongoing electricity crisis and the country's worst bird flu outbreak cost the company 2 billion rands ($108.9 million). Astral reported a 621 million rand operating loss in the full year ended September 30, compared to a 1.4 billion rand profit last year. Its flagship poultry division's 1.38 billion rand loss was partly offset by a 759 million rand profit from its feed division, which saw 12% revenue growth. The company said group revenue was flat at 19.3 billion rand but 1.6 billion rand costs associated with lengthy…

Nov

19

2023

By The African Mirror

IMF may need to augment Egypt program amid Gaza war impacts, Georgieva says

BUSINESS

INTERNATIONAL Monetary Fund Managing Director Kristalina Georgieva told Reuters that the Fund was "seriously considering" a possible augmentation of Egypt's $3 billion loan program due to economic difficulties posed by the Israel-Hamas war. Georgieva told Reuters in an interview on the sidelines of the Asia Pacific Economic Cooperation Summit that the conflict is "devastating" Gaza's population and economy and has "severe impacts" on the West Bank's economy and is also posing difficulties for neighbouring countries Egypt, Lebanon and Jordan through the loss of tourism and higher energy costs.

Nov

19

2023

By The African Mirror

Kenya could lose up to 7.25% of GDP to climate change, World Bank says

BUSINESS

KENYA could lose up to 7.25% of economic output by 2050 if it does not take strong action to adapt to climate change and mitigate its effects, the World Bank said. Like other so-called frontier economies, the East African nation has been suffering from the effects of global heating, including prolonged droughts, in recent years. "By 2050, inaction against climate change could result in a decline in real GDP of 3.61–7.25 percent," the World Bank said in a new publication called Kenya Country Climate and Development Report. "The impact of climate change on the economy could be partly buffered by…

Nov

18

2023

By MARC JONES

Gabon’s junta pays first instalment of debt-for-nature fund money – TNC

BUSINESS

THE junta that seized power in Gabon in August has paid the first instalment of conservation fund money that forms a key part of a pioneering "debt-for-nature" deal sealed just before its coup. The $500 million debt swap was the first of its kind on continental Africa and saw the government of overthrown president Ali Bongo commit to protecting Gabon's coastal waters that host the world's largest population of leatherback turtles. His removal though raised concerns the newly inked deal could fall apart and even trigger a sovereign debt default that would cause further problems in the central African country. Junta officials have since…

Nov

18

2023

By The African Mirror

Nigeria withdraws $1.1 bln claim against Eni on oilfield deal

BUSINESS

NIGERIA is withdrawing civil claims totalling $1.1 billion against Italian energy group Eni and related to allegations of corruption in a oilfield deal, Bloomberg News reported. The West African country's justice ministry will waive the claims before Italy's highest court "unconditionally" and "with immediate effect" no later than November 17, the report said citing a letter regarding the OPL 245 field and seen by the newswire. Responding to a request for comment, an Eni spokesperson confirmed that the group had received the letter regarding OPL 245, and said it was pleased about the Nigerian government's decision. The energy group added it…

Nov

17

2023

By DUNCAN MIRIRI and GEORGE OBULUTSA

Kenya gets additional $938 mln from IMF, soothing nerves

BUSINESS

THE International Monetary Fund has reached a staff-level agreement with Kenya, unlocking immediate access to a $682.3 million tranche and boosting the current lending programme by $938 million, the fund said. The East African nation is grappling with acute liquidity challenges caused by uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures next June. Its balance of payments and financial positions have also been strained by the legacy of the COVID-19 pandemic and frequent climate change-induced droughts, the fund said after a two-and-a-half-week review mission to Nairobi. "The tightening global financing conditions for…

Nov

16

2023

By The African Mirror

Lithium mine project hurdles will drive prices higher – Sibanye CEO

BUSINESS

EUROPE will struggle to secure domestic supplies of vital battery mineral lithium due to permit delays and local opposition to projects, driving prices higher, Sibanye Stillwater CEO Neal Froneman said. Prices for battery-grade lithium have declined but remain at historically high levels and the market is forecast to move to mounting deficits from 2025 onwards, according to SFA Oxford analysts. Permitting problems and opposition by local groups had derailed a project in Serbia and jeopardised projects in Portugal and Spain, SFA Oxford analysts told a briefing. Diversified miner Sibanye is developing its 80% owned Keliber lithium project in Finland at an…