Blog

The Pan-African Economy in Brief: Thursday, January 10, 2019

IVORY COAST:
Ivory Coast plans to issue a $1 billion eurobond by June 2019:
Ivory Coast plans to issue a billion dollar eurobond by June 2019, reported Bloomberg on January 7, citing sources close to the case. The world's largest cocoa-producing country, whose budget foresees the issuance of $2.5 billion in debt in 2019, is currently reviewing the number of bonds it can issue on the West African Economic and Monetary Union (WAEMU) regional market and seeking to obtain the balance on international markets, said these sources, which have preferred not to be named. The issuance of Eurobonds is expected to take place in May or June 2019, these same sources have added, indicating that the transaction could be divided into three Tranches denominated in as many foreign currencies...


GHANA:
Ghana is now planning to raise $3 billion from the international capital market in 2019:
Ghana now plans to raise up to $3 billion on the International Debt Market, compared to $2 billion initially reported in the 2019 Finance Bill, according to the medium-term debt strategy published by its Ministry of Finance. Two thirds of these resources will be used to finance its Budget Deficit while the remaining third will be used to refinance the debt. The country, which has to finance a serious public deficit (even if it remains contained below its Reference Scenario of 5% of GDP), unfortunately cannot rely on local commercial banks, whose asset quality has deteriorated, increasing the cost of borrowing and limiting long-term borrowing possibilities...

The government reduces VAT on local textile products to zero:
In Ghana, the Government has just decided to exempt its local textile producers from value-added tax (VAT). According to information provided by Commodafrica, this new measure aims to boost the Ghanaian textile industry. Aiming mainly at the supply of local textile products, this operation should make it possible to Reduce manufacturing costs, increase the competitiveness of local products compared to foreign products and help local companies to compete with cheap imports...


GABON:
The AfDB will finance the construction of two hydropower plants in Gabon:
On January 4, the African Development Bank (AfDB) and the GPC-ERANOVE Consortium signed a letter of intent to finance the Ngoulmendjim (73 MW) and Dibwangui (15 MW) hydropower plants in Gabon. Under the terms of this document, submitted following a call for expressions of interest, the AfDB confirms its intention to act as co-arranger and co-lender, for an amount of €160 million, to Africa Finance Corporation (AFC), in the financing of these hydropower projects...


CAMEROON:
Cameroon is testing new wheat varieties to reduce imports estimated at 150 billion CFA francs each year:
Cameroon currently has on its territory, more than 200 experimental plots of wheat cultivation, has just revealed the Minister Delegate to the Minister of Agriculture and Rural Development (Minader), Clémentine Ananga Messina, during a field trip to Wassandé, in the Adamaoua Region. This locality in the northern part of Cameroon, which houses the Ruins of the Société de développement du blé (Sodéblé), a public company that went bankrupt in the late 1980s, is, it is reported, one of the experimental fields for New varieties of wheat, currently being tested in the country...


TANZANIA:
Minister of Mines appointed to the new Ministry of Investment:
Tanzanian President John Magufuli has appointed lawyer Angellah Kairuki to the Ministry of Investment, a newly created department to revitalize the sector. This Appointment comes in a context of crisis between the government and some major foreign economic operators. According to a statement issued on Tuesday, January 8, by the Presidency, the appointment of the person who had held the Mines aux Investissements portfolio since 2017 is in line with the objective of increasing investments and strengthening the supervision of a sector whose figures no longer speak for themselves...


KENYA:
In overcapacity, Kenya Power is freezing the signing of new power purchase agreements:
Kenya Power's Board of Directors has decided that the entity will no longer sign a power purchase agreement until further notice. The public company in charge of electricity supply in the country has announced that the electricity network is in overcapacity. Overall capacity has increased in recent years, from 2,327 MW in 2016 to 2,800 MW in 2018 for a demand of about 2,000 MW." Currently, Kenya Power is forced to pay for this excess supply, which affects its finances. Therefore, the Board of Directors of Kenya Power is considering future demand-based purchase agreements," said Mahboub Maalim Mohamed, the company's president, reports Confidential Africa...