Blog

The Pan-African Economy in Brief: Monday, December 2, 2019

Ghana:
A bond issue and an IPO planned for early 2020 to finance the government's "flagship projects":
The Ghanaian government plans a new Eurobond issue and an initial public offering of one of its mining funds to finance "flagship projects". This was announced this week by Ken Ofori-Atta, Ghana's Finance Minister, in an interview with Bloomberg. Through the initial public offering of a mining royalty fund, the Ghanaian government hopes to raise about $750 million. The fund is expected to be listed on the London Stock Exchange and the Ghana Stock Exchange. As for the bond issue, the head says that if the amount has not yet been clearly defined, the 2020 budget provides for a new offshore debt of up to $3 billion...


Nigeria:
Foreign direct investment in telecoms jumped in the third quarter of 2019:
According to Nigeria's National Statistics Bureau (NBS), foreign direct investment (FDI) jumped from USD 4.5 million in the second quarter of 2019 to USD 885 million in the third quarter of 2019. This quarterly performance, which is the highest recorded by the sector over the past five years, is also well above the USD 114.4 million recorded throughout 2018. This increase in FDI in telecoms is not due to the presence of new investors in the sector. According to several analysts in the Nigerian telecom market, this performance is due rather to existing players, who have raised funds from external partners to increase their capacity. This is particularly the case for telecom companies that have invested in the extension and modernization of their network...


Cameroon:
With a turnover of 52 billion CFA francs, MTN dominated the mobile telephony market in the 4th quarter of 2018:
Data provided by the Cameroon Telecom Regulator (ART) indicate that in the fourth quarter of 2018, concession operators in the sector achieved a total turnover of 131.9 billion CFA francs. Out of this total turnover, the operator MTN Cameroon manages with the largest share: 51.92 billion CFA francs. In detail, MTN displays 25.38 billion CFA francs in the voice service; 9.37 billion CFA francs in the Internet service, 4.14 billion in Mobile Money and 13.024 billion in the "other" section. The next immediate one is Orange Cameroon. Orange's Cameroonian subsidiary posted sales of 50.5 billion CFA francs in the fourth quarter of 2018. In detail, this operator has earned 29.29 billion CFA francs in voice service; 1.2 billion on the Internet (almost nine times less than MTN); 6.7 billion CFA francs on Mobile Money (plus two billion more than MTN) and 13.39 billion CFA francs in the "other" section...

The National Hydrocarbon Company unveils the benefits of the new petroleum code:
In its recent publication of its magazine SNH Infos, the National Hydrocarbon Company (SNH) presents the main advantages of the new oil code adopted by Cameroon in the second quarter of 2019. In terms of taxation, says Jean-Jacques Koum, Chairman of the Permanent Commission for the Negotiation of Oil and Gas Contracts set up by the SNH, "the new oil code contains a whole chapter devoted to the incentives that Cameroon may grant to oil companies, to encourage them to take more risks, particularly when the international oil market context is not favourable to investment, or when the field offered presents proven difficulties."...


Guinea:
In Africa, the need for gas infrastructure is enormous (Gabriel Obiang Lima):
Over the past decade, natural gas consumption in Africa has improved significantly on the continent. About ten gas power plants came off the ground during this period and several dozen others are planned for the coming years. There is thus an increasing desire on the part of African countries to rely on competitive energy that is less polluting than coal. But gas cannot play this expected role if African countries do not invest resolutely in access to fuel, said Gabriel Obiang Lima, Equatorial Guinea's Minister of Energy. He noted that the need for gas infrastructure on the continent is enormous. Compared to the world's producing and major importing countries (taking into account the demand/supply ratio), the continent's infrastructure is quite marginal, he added...