BUSINESS - The African Mirror

Jul

29

2020

AFDB set to join landmark $20 billion Mozambique LNG financing

BUSINESS

THE African Development Bank (AFDB) has concluded a $400-million loan deal which paves the way for a major role in the financing the construction of Mozambique’s Liquefied Natural Gas, ranked as Africa’s single biggest direct foreign investment. Involved in the Mozambique project, estimated to cost over $20 billion, is a global team of energy developers and operators, led by Total alongside Mitsui, Oil India, ONGC Videsh Limited, Bharat Petroleum, PTT Exploration, as well as Mozambique's national oil and gas company, ENH. With the signing on 15 July, the Bank joined a global syndicate of commercial banks, development finance institutions and…

Jul

28

2020

By The African Mirror

IMF grants South Africa $4.3-billion COVID-19 loan

BUSINESS

AFRICAN MIRROR REPORTER THE South African government’s battle to save an economy and livelihoods battered by COVID-19 has received a major boost. The International Monetary Fund (IMF) has approved a $4.3-billion emergency loan to assist the country to mitigate the social and economic impact of the pandemic. The IMF loan has however generated debate in South African where some, including trade unions aligned to the ruling ANC, have expressed reservations. The South African government said the IMF low-interest loan would contribute to the government’s fiscal relief package while respecting the country’s decisions on how to best provide relief to the…

Jul

26

2020

By The African Mirror

A moral failure and a terrible investment

BUSINESS

MOHAMED ADOW A BRITISH government facing financial meltdown and spending billions propping up industries in decline. This isn’t news from the 1970s, or 2008. It’s today. After a heated debate in Number 10, the government is still considering giving the green light to a billion-pound loan guarantee for a controversial gas pipeline project in Mozambique. Signatures on the deal are already underway, but the government still hasn’t confirmed how much money it’s prepared to stump up. This week’s fresh uncertainty comes as new reports suggest that the government agency responsible for due diligence on agreements like this is ‘cutting corners’…

Jul

24

2020

By The African Mirror

Okonjo-Iweala fits the bill to be the new head of the WTO

BUSINESS

MILLS SOKO, Professor: International Business & Strategy, Wits Business School, University of the Witwatersrand MZUKISI QOBO, Head: Wits School of Governance, University of the Witwatersrand THE next director-general of the World Trade Organisation (WTO) will replace Brazilian Roberto de Azevedo, who has served since 2013 and plans to step down at the end of August, a year before the conclusion of his term. Of the eight candidates who have thrown their hats into the ring, three are from Africa. They are the former Nigerian finance minister Ngozi Okonjo-Iweala; the former Kenyan foreign minister Amina Mohamed, who also previously served as…

Jul

22

2020

By The African Mirror

Kenya’s flower industry rebounds as lockdowns ease

BUSINESS

OMAR MOHAMMED DEMAND for Kenya's flowers has recovered to around 85% of pre-coronavirus levels as European markets open up after lockdowns, an industry body said, spurring hope that the industry could see a full rebound by next year. Kenyan farmers were forced to throw away millions of roses in March as Europe sealed borders and residents put weddings and funerals on hold. But demand is coming back as restrictions ease and growers are hoping it will recover fully by next year, said Clement Tulezi, chief executive of the Kenya Flower Council. "We are better than we were two months ago,…

Jul

21

2020

By The African Mirror

Kenyan emerges as one of early WTO frontrunners

BUSINESS

EMMA FARGE KENYA's candidate to the World Trade Organization's (WTO) top post said she is seeking Washington's backing and expressed some sympathy with its criticism of the global body as she emerges as one of two reform-minded African female frontrunners. Amina Mohamed told Reuters a closed-door vetting session last week went "really well" as she outlined her platform to steer the body out of crises from global trade tensions and rising protectionism to a COVID-induced dive in business. Delegates say Mohamed, a 58-year-old minister and former WTO chair, is one of the favourites alongside Nigeria's Ngozi Okonjo-Iweala to replace Brazil's…

Aug

08

2020

By The African Mirror

World Bank approves $114 mln for Nigeria’s COVID-19 response

BUSINESS

THE World Bank has approved $114 million to help Nigeria tackle its coronavirus pandemic, the global lender has announced. The money comes in the form of a $100 million loan and a $14 million grant to be split between Nigeria's 36 states and federal-level procurement of medical equipment, tests and medicine. Africa's most populous country has recorded more than 45,000 confirmed coronavirus cases and 930 deaths, but low levels of testing have left a muddy picture of the outbreak's severity. "Nigeria has ramped up its efforts to contain the COVID-19 outbreak, but more needs to done at the state level,…

Aug

07

2020

By The African Mirror

Egypt and Greece sign agreement on exclusive economic zone

BUSINESS

MAHMOUD MOURAD EGYPT and Greece have signed an agreement designating an exclusive economic zone in the eastern Mediterranean between the two countries, an area containing promising oil and gas reserves, Egyptian Foreign Minister Sameh Shoukry said. Shoukry made the announcement at a joint press conference with his Greek counterpart Nikos Dendias in Cairo. "This agreement allows both countries to move forward in maximizing the utilization of the resources available in the exclusive economic zone, especially promising oil and gas reserves," Shoukry said. In Greece, diplomats said the deal effectively nullified an accord between Turkey and the internationally recognised government of…

Aug

07

2020

By The African Mirror

Glencore scraps $2.6 billion dividend after first-half loss

BUSINESS

ZANDI SHABALALA and JULIA PAYNE GLENCORE became the first major mining company to scrap its dividend, saying on Thursday the economic outlook was too uncertain because of the coronavirus pandemic and that it would prioritise cutting debt instead. The mining and commodities trading company said its net debt jumped 12% in the first six months of the year to $19.7 billion and that it was booking a $3.2 billion charge, mainly due to the broader economic fallout on its businesses from the pandemic. While its trading division's record $2 billion first-half operating profit helped boost overall adjusted earnings, the hefty…

Aug

05

2020

By The African Mirror

South Africa’s diamond polishers look to lockdown lovers to add shine

BUSINESS

TANISHA HEIDBERG and SISIPHO SKWEYIYA SOUTH Africa's diamond industry, famed for sales the world over and supplying gems for the British crown jewels, is looking closer to home to revive its fortunes following the coronavirus slump. Even before the new virus triggered the COVID-19 pandemic, diamond prices and demand were weak. Global economic weakness has exaggerated that and Anglo American's De Beers unit last week reported a plunge in earnings. Some of the many small players who polish the rough diamonds that De Beers and other miners unearth say they have been pleasantly surprised by the extent of lockdown jewellery-buying…