Societe Generale & CDC Group's new $100m Africa trade finance, Actis backed Honoris United Universities acquires Nigerian university, Humania $108.5m capital investment.
This is your 4-minute round of the most important business, finance and markets news dominating Africa as countries start to open up their economies.Tell a friend or colleague who needs to be well informed by signing up here .
Economic Updates :
Zambia Inflation Rate slows for first time in 15 months. The annual inflation rate dropped to 15.9 per cent in June 2020 from 16.6 per cent in May while food prices dropped from 17.5 per cent in May to 16.3 per cent in June.
Senegal annual growth drops to lowest in nine year. Figures show that the economy grew by 1.4 per cent compared to a 3.3 per cent growth in the previous period, the weakest expansion since 2011 which has been linked to the global pandemic.
Inflation in Algeria rises. The annual inflation rate in the country rose to 1.9 per cent in May from 1.8 per cent in the previous three months, largely due to higher prices for food according to the government.
5 things to know:
€117.3 million for Ethiopia Wind Project. Denmark’s largest Bank, Danske Bank, approved a loan of €117.3 million for the Assela wind project, which will provide 100 MW into Ethiopia’s electricity grid. A grant of €28.7 million is also being provided by Danida Business Fund.
Societe Generale and CDC Group plc, the UK’s publicly owned impact investor, closed a $100 million trade finance risk sharing facility this week. This will help Societe Generale to increase the limits that it currently provides to local banks and extend limits to new banks in Africa.It will also provide critical funding to local importers of essential food and resources as well as supporting job creation in Africa.
Uganda-Tanzania $3.5 Billion Oil Pipe decision to be reached in December. The Tanzania Petroleum Development Corp has announced the final investment decision on the oil pipeline from Uganda to Tanzania’s coast is expected to be reached in December. Uganda has plans to start producing and exporting oil via the pipeline from 2023-24.
Regulatory Approval to be introduced for Nigerian Fintech Start-ups. A new framework for regulatory sandbox operations has been released by the Central Bank of Nigeria.The sandbox will allow firms to conduct live tests on products and services in a controlled environment and supervised by the CBN.It is hoped this will reduce barriers for entrepreneurs entering the market while safeguarding against fraud.
Private Equity Deals :
Honoris United Universities, an education group backed by Actis, brought the Nile University in Abuja, the first University acquisition in Nigeria and the West of Africa, in February this year.The group owns private universities in Morocco, Tunisia, Mauritius, South Africa, Zambia, and Zimbabwe.
Tunisian date processing company VACPA has received funding of €10 million from the International Finance Corporation (IFC), to help preserve jobs and increase its expansion as the largest exporter of dates in Tunisia.
Venture Capital Deals :
Humania a North Africa platform provider of private hospitals in Egypt and Morocco received a capital investment of $108.5 million from the IFC, IFU, and the Danish Investment Fund. The funding will help support Humania create a network of high quality hospitals easing the pressures on health services which have been strained due to the COVID-19 pandemic.
South Africa FinTech SME capital provider, ProfitShare Partners has secured R100 million from the SA SME Fund. This will allow the company to provider more disruptive alternative funding to SMEs.
Liquidity Actions :
A Nairobi Securities Exchange-listed firm, Flame Tree Group announced the intention of issuing of a corporate bond to fund growth and gauge the appetite of investors who have favoured treasury bonds. For the full story check this link
Blue Chip Companies in Nigeria turn to commercial papers for Funding. Findings have show that companies are turning towards commercial papers for funding rather than conventional bank loans and share because of the ease of raising the funds in this manner and lower interest rates.
Nigeria’s Nova Bank has raised a N10 billion 7-year Fixed Rate Subordinated Unsecured Bonds under its N50 billion debt issuance programme. The bond has a yield of 12 per cent to 12.50 per cent.The offer, which opened on June 30, will close on July 8, 2020.
M & A
Africa’s largest digital payments hub, MFS Africa, acquired digital payment management startup Beyonic .The acquisition is still subject to regulatory approval by the Fair Competition Commission in Tanzania.
South Africa’s Medu Capital has acquired a 25.1 % in Weir Minerals a leading South Africa mineral solutions provider. The funding would support their expansion strategy.
Africa-focused investment company Leapfrog Strategic Africa Investments ( LSAI) will acquire a 24% stake in Kenya insurer and asset manager ICEA LION Insurance Holding Limited.
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