BUSINESS - The African Mirror

Sep

30

2023

By MANUEL MUCARI, KIRSTIN RIDLEY and SAM TOBIN

Explainer: Why has Mozambique sued Credit Suisse over the ‘tuna bonds’?

BUSINESS

MOZAMBIQUE'S lawsuit against Credit Suisse and shipbuilder Privinvest over the decade-old "tuna bond" scandal in London could pitch one of the world's poorest nations against corporate heavyweights in a $1.5 billion-plus battle next week. Credit Suisse's parent UBS and the African republic were on Friday locked in out-of-court settlement talks, according to one source in Mozambique's Attorney General Office and two sources familiar with the situation, who asked not to be named because the negotiations were confidential. The 11th-hour bid to secure a deal would allow Swiss banking giant UBS to resolve an inherited legal headache and escape the scrutiny of…

Sep

29

2023

By The African Mirror

South Africa’s foreign direct investment inflows rise to $2.8 billion in second quarter

BUSINESS

SOUTH Africa recorded foreign direct investment inflows of 53.8 billion rand ($2.8 billion) in the second quarter of 2023, up from inflows of 0.5 billion rand in the first quarter, central bank data showed. The South African Reserve Bank said in its Quarterly Bulletin that the acquisition of a domestic beverage company by a non-resident firm contributed to the increase. Heineken said in April that it had completed the purchase of wine and cider company Distell. Second-quarter portfolio investment outflows fell to 4.6 billion rand from 32.0 billion rand in the previous quarter, the Quarterly Bulletin said.

Sep

29

2023

By The African Mirror

Air Senegal, Royal Air Maroc sign codeshare agreement

BUSINESS

AIR Senegal and Morocco's Royal Air Maroc signed a memorandum of understanding for code-sharing and other steps to deepen cooperation. Air Senegal said in a statement the carriers would seek to increase connections and provide more options for passengers. Other areas of cooperation include aircraft maintenance, chartering and handling. "Royal Air Maroc and Air Senegal today are giving concrete expression to the desire of the highest authorities in our respective countries to develop this air bridge, in terms of both passenger and cargo transport," Air Senegal's CEO, Alioune Badara Fall, said.

Sep

28

2023

By The African Mirror

‘Tightrope’ debt situation not unique to Kenya, finance minister says

BUSINESS

KENYA'S struggle with a heavy debt load and pressure on its hard currency reserves is not unique since other nations are facing the same situation, its finance minister said. Njuguna Ndung'u was responding to a research note by U.S. investment bank JPMorgan which said on Tuesday that the East African nation was "walking a tightrope" to avoid a crisis due to a maturing dollar bond and persistent currency weakness. "All low- and middle-income countries are walking a tightrope given the current economic constraints globally. The Kenyan case is being featured because of the Eurobond 2024," the minister told Reuters, referring…

Sep

27

2023

By CONRAD ONYANGO, BIRD STORY AGENCY

Acquisition activity offers life-line to Africa’s fintechs, startups

BUSINESS

FINTECHS in Africa continues to show their resilience despite the drying-up of venture capital during 2023, as startups begin to enter strategic partnerships with each other and with larger financial institutions. Over the past two years, the continent has recorded 26 fintech startup acquisitions. That compares to just seven between 2019 and 2021 according to Disrupt Africa’s latest report, Finnovating for Africa: Reimagining the African financial services landscape 2023. “This suggests Mergers and Acquisitions (M&A) activity in the space is hotting up, which will serve as positive news for investors and entrepreneurs alike,” said authors of the report. South Africa…

Sep

27

2023

By SETH ONYANGO, BIRD STORY AGENCY

OPEC Fund ramps up multibillion-dollar investment blitz in Africa

BUSINESS

THE OPEC Fund is ramping up a series of strategic investments in Africa, pushing to position itself not just as a benefactor but as an ally to the continent's burgeoning growth story. In the past two years, the fund, with its deep pockets and understanding of energy dynamics, has flexed its financial muscle on the continent in various sectors. The oil cartel’s development fund is not just opening its coffers to energy projects to bolster access in Africa but is embedding itself in diverse sectors, including food security, humanitarian aid, infrastructure, and education. Last December, the OPEC Fund infused US$280…

Sep

26

2023

By The African Mirror

Tanzania has started domestic gold purchases to boost forex reserves

BUSINESS

TANZANIA has started buying gold locally as a way of boosting its foreign exchange reserves, the central bank said. The central bank first announced its intention of buying gold in late August. "The bank is therefore purchasing gold from domestic miners and traders, in Tanzanian shillings," Bank of Tanzania (BOT) said in a statement. On Friday, Central Bank Governor Emmanuel Tutuba said they were planning to buy six tonnes of gold from small and middle-scale miners and other traders by the end of the year and had already bought and sold 418 kg (921.53 lb) of the precious metal. Gold…

Sep

26

2023

By MAXWELL AKALAARE ADOMBILA and CHRISTIAN AKORLIE

Ghana central bank holds main rate, sees better growth outlook

BUSINESS

GHANA'S central bank kept its main interest rate at 30.00% as forecast by a Reuters poll of analysts, citing lower inflation, a stable exchange rate and relatively strong economic growth. Bank of Ghana Governor Ernest Addison said recent data suggested growth was more robust than expected, projecting GDP would expand by some 3% this year, compared with an International Monetary Fund (IMF) forecast of 1.6%. "The consensus view of the Monetary Policy Committee is that we should see stronger growth than projected under the (IMF) programme," he told reporters, referring to a $3 billion support package from the Fund that is…

Sep

26

2023

By The African Mirror

Uganda in talks with Chinese credit agency for pipeline funds

BUSINESS

UGANDA is in advanced talks with Chinese export credit agency SINOSURE to provide credit for its crude oil pipeline after pressure from environmentalists forced some Western banks to recoil from the project, a top official said on Monday. The 1,445-kilometre (898-mile) East African Crude Oil Pipeline (EACOP) is planned to help Uganda export its crude from oilfields in the country's west via a port on Tanzania's Indian Ocean coast. It is co-owned by the government of Uganda, France's TotalEnergie, China's CNOOC and Tanzania's Tanzania Petroleum Development Corporation (TPDC). The project will cost $5 billion, including the cost of credit and 40%…

Sep

22

2023

By SETH ONYANGO, BIRD STORY AGENCY

Retail investors fuel Africa’s 12-month crypto surge to $117 million

BUSINESS

AFRICA accounted for US$117.1 billion in cryptocurrency transactions in the year to June 2023, constituting 2.3% of the global transaction volume. Centralised exchanges in this period, proved to be the go-to platforms, channeling over half of the region's digital asset volume, according to blockchain analysis firm, Chainalysis. In a notable deviation from global trends, Africa's digital coin market leaned heavily on retail investors. The bulk of the transactions were pegged under the US$1 million mark, illustrating a distinct retail-driven trend compared to other regions. Though historically one of the smaller players in the crypto arena, Africa's in-depth data paints a…