BUSINESS - The African Mirror

Oct

13

2023

Zimbabwe wants new IMF staff-monitored programme by April

BUSINESS

ZIMBABWE hopes to agree on a new staff-monitored programme with the International Monetary Fund (IMF) by April next year, with an IMF team due to visit later this month for initial talks, its finance minister said. "Our intention is that by the time we go for the Spring Meetings in April 2024, we should have signed off on a staff-monitored programme," Mthuli Ncube told reporters in Marrakech at the IMF and World Bank Annual Meetings. "It will focus on maintaining discipline on the fiscal front and continue fine-tuning our exchange rate system and maintaining a tight monetary policy." An IMF…

Oct

12

2023

By The African Mirror

IFC loans Morocco’s OCP $106 million to build two solar power plants

BUSINESS

MOROCCO'S state-owned phosphates and fertiliser producer OCP said it had signed an agreement with the International Finance Corporation (IFC), the World Bank's investment arm, on a 100 million-euro ($106 million) loan to build two solar plants to increase production of low-carbon fertilizers. The two photovoltaic plants will be located in the mining areas of Khouribga and Benguerir with a combined capacity of 400 megawatts and a storage capacity of up to 100 megawatt-hours, OCP said in a statement. This green loan is the second offered by the IFC to OCP within a year after a similar 100 million-euro loan last…

Oct

11

2023

By FELIX NJINI

Zambia to decide on new Mopani Copper Mines investor in October

BUSINESS

THE Zambian government is expected to make a final decision on the sale of Mopani Copper Mines this month, securing a new investor for the assets it bought from Glencore in 2021, a source with knowledge of the matter told Reuters. Zambia's Mines Minister Paul Kabuswe had initially said a new investor for the copper mines, which are struggling to make a profit, would be selected by the end of July. The process has been delayed by complex negotiations, as it also involves Glencore, to which Mopani owes money, the source said. Glencore has previously said it will not comment on the sales process as…

Oct

11

2023

By FRANCESCA LANDINI and WENDELL ROELF

Exclusive: Eni and partners to decide on Mozambique LNG investment by mid 2024, sources say

BUSINESS

ITALY'S Eni SpA hopes to reach a final investment decision on its second floating liquefied natural gas (LNG) project in Mozambique by the end of June next year, two sources directly involved with the project said on Tuesday. Its first LNG project - called Coral Sul - made the impoverished African country a global producer and exporter of LNG from November and the new project would further bolster Mozambique's output. This could also boost Eni's gas output from Africa which it can transfer to Europe, helping diversify Europe's gas sourcing in the next few years, its CEO Claudio Descalzi said in January.…

Oct

10

2023

By SETH ONYANGO, BIRD STROY AGENCY

Starlink casts a financial lifeline to Jumia in new deal

BUSINESS

THE stars may finally be aligning for Jumia after SpaceX’s Starlink tapped the online retailer, once dubbed Africa's 'Amazon' to drive its satellite internet offering across the continent. Jumia will sell Starlink’s satellite terminals and other kits in some African nations, starting with Nigeria in the coming weeks, and subsequently expanding to Kenya and others. Jumia will help Starlink sell terminals in areas that especially lack formal addresses and city mapping, areas where traditional broadband infrastructure often falls short, yet the demand for connectivity remains high. "For Jumia, this venture isn't just about diversifying its product range. It's a lifeline,…

Oct

09

2023

By The African Mirror

Niger cuts 2023 budget by 40% as post-coup sanctions bite

BUSINESS

NIGER has cut its planned spending in 2023 by 40% because of international sanctions imposed after the military took power in a July coup, further hobbling the economy in one of the world's poorest countries, the junta said in a televised statement. The statement said this year's budget, initially forecast at 3.29 trillion CFA francs ($5.3 billion), was slashed to 1.98 trillion, without detailing where the cuts would fall. Soldiers from the presidential guard detained President Mohamed Bazoum on July 26 and set up a transitional government, one of the recent coups in West Africa's Sahel region. The takeover prompted…

Oct

08

2023

By LIBBY GEORGE, PATRICK WERR and MARC JONES

Egypt’s bonds fight back after Moody’s downgrade triggers tumble

BUSINESS

EGYPT's government bonds fought back from an initial heavy tumble after Moody's had downgraded the country's credit rating to a new low and the head of the IMF had warned Cairo against delaying another currency devaluation. Moody's, which had been eyeing up a possible downgrade for months, concluded the process late on Thursday by cutting it one notch into the 'substantial risk' Caa1 bracket which is seven rungs into 'junk' territory. The rating firm had cited the country's worsening debt problems amid a bruising economic crisis that has triggered a string of devaluations, record inflation and more of its citizens to seek risky…

Oct

08

2023

By The African Mirror

South Africa’s first virtual renewable electricity transfer model to go live next year

BUSINESS

SOUTH Africa's first virtual electricity transfer model is likely to go live by the end of next year, a top government official said, a move that could rapidly ramp up renewable power consumption and reduce the burden on ailing state utility Eskom. Eskom's ageing plants and struggling transmission grid have forced it to implement record daily power cuts since last year - sometimes for up to 10 hours a day - to prevent a grid collapse. The utility in August signed an agreement with Vodacom, the African telecoms arm of Vodafone, to introduce an electricity transfer model known as virtual…

Oct

07

2023

By The African Mirror

Ghana Eurobonds jump after $3 billion IMF bailout moves forward

BUSINESS

GHANA'S international sovereign dollar bonds rose on Friday after the West African country reached a staff-level agreement with the International Monetary Fund on the first review of its $3 billion bailout loan program. Longer-dated maturities jumped the most, with the 2061 bond rising just over 1 cent to 41.504 cents on the dollar at 1204 GMT, according to Tradeweb data. Most of the bonds are still trading at deeply distressed levels of 41-44 cents on the dollar.

Oct

07

2023

By JORGELINA DO ROSARIO and KARIN STROHECKER

Zambia, bondholders kick off formal talks on $3 billion debt restructuring, sources say

BUSINESS

ZAMBIA'S international bondholders have formally started debt talks with the government this week, according to three sources, a key step to restructure more than $3 billion of overseas bonds. A group of the country's biggest private creditors has entered into a restricted period, which means they temporarily cannot trade the country's notes in exchange for non-public information, the sources added, asking not to be named because the discussions were private. The non-disclosure agreements(NDA) would be still in place next week, one of the sources added when Zambia officials and creditors are set to meet in person during the World Bank…