The Pan-African Economy in Brief : Saturday, September 21, 2019

Zimbabwe :

Zimbabwe signs a 150 000 tonne maize purchase agreement with South Africa: "Zimbabwe has reached an agreement to receive 150 000 tonnes of non-transgenic white maize from South Africa to meet the needs of its population. This is reported by Bloomberg, that quotes a source close to the case, having requested anonymity. According to the details of the source, the cargo will be delivered by the Kenyan firm Export Trading Group (ETG), which is active in the import-export of food products in nearly 40 countries around the world. This agreement comes after an unsuccessful attempt by the authorities to launch an international call for tenders to acquire 750 000 tonnes of the cereal. The country has not been able to find common ground with the selected supplier on payment terms, says Bloomberg..."


The IMF expects growth to reach 4.5% in 2019 thanks to a recovery in agricultural sector activities: "Malawi is expected to achieve economic growth of 4.5% in 2019, thanks to an improvement in agricultural sector activities. This is what the International Monetary Fund (IMF) said in a statement issued this week. This growth is expected to be driven by a recovery in exports of tea, tobacco and sugar cane, crops that had been ravaged by the seasonal El Nino current. The reconstruction of infrastructure destroyed by Cyclone Idai, which hit the country several months ago, should also improve the country's economic prospects..."


Zambia's Yalelo receives a $6 million investment from Finnfund to increase its production: "Zambia's Yalelo aquaculture company received a $6 million equity investment from Finnfund, a Finnish financial institution that targets private companies in developing countries. The transaction represents Finnfund's first direct investment in Zambia. The resource mobilized will enable the company specializing in the production and marketing of fish (Tilapia) to increase its annual production capacity from 12,000 to 25,000 tonnes. In general, Finnfund's investment strategy consists in supporting structured and scalable companies with capital through investments of between €1 million and €25 million..."

Nigeria :

Nigeria is considering applying for a $2.5 billion loan from the World Bank: "The Nigerian authorities have initiated talks with the World Bank to negotiate a $2.5 billion loan. This was announced this week by Hafez Ghanem , World Bank Vice President for Africa. This operation is part of the Nigerian government's strategy to mobilize financing for its development projects, while reducing the debt burden. To this end, it had announced that it would now give priority to concessional loans at affordable interest rates over bond issues. For its 2019 budget, the country planned to contract approximately $2.7 billion in external borrowing..."