The Pan-African Economy in Brief: Thursday, November 8, 2018

Mozambique will reform its cashew nut marketing system: "Mozambique will change the current cashew nut trade regime, said Ilidio Bande, Director of the National Institute for Cashew Promotion (INCAJU). According to the Manager, whose comments are reported by Macauhub, the Marketing process should be divided into 3 phases, the first of which will be reserved for local Traders. Foreign traders will be able to participate in the second and third phases of nut marketing..."

SATOL Group announces a $54 million investment for a cassava industrial zone: "The French agro-industrial group SATOL announces an investment of $54 million for the installation of an industrial zone dedicated to Manioc in Assounvoué, near Toumodi, in central Ivory Coast. According to Christophe Barthélemy, general manager and manager of the SATOL subsidiary in Ivory Coast, this project of the agro-industrial group will see the creation of a cassava processing plant at a cost of 15 billion CFA francs (about 26 million $). To the agricultural branch will be granted 13 billion FCFA (about 22 million $), then 3 other billion FCFA (about 5 million $) to the Operational Costs..."

Finally, the IMF supports the government's decision to privatize the UTB and BTCI: "The IMF Mission supports the relaunch of the privatisation of the Union Togolaise de Banque (UTB) and the Banque Togolaise pour le Commerce et l'Industrie (BTCI), decided by the Government in Council of Ministers, and approves the suspension of the merger process of the two public banks. With this guarantee, the Bretton Wood Institution is initiating a Change of Course. As a reminder, as part of the three-year agreement signed by the IMF on May 5, 2017 with the Togolese government, the Fund recommended merging into these Terms: "The two under-capitalised public banks will be consolidated into a single sound institution"..."

KfW Development Bank invests $35.2 million in Nigerian financial institution InfraCredit: "The German Development Finance Bank (KfW Development Bank) has invested $35.2 million in Infrastructure Credit Guarantee Company Ltd (InfraCredit), a Nigerian institution that provides guarantees in local currency to infrastructure financing structures. The resource that is granted for a 10-year period will be used to strengthen InfraCredit's equity capital. This entity set up by the Nigeria Sovereign Investment Authority (NSIA) will also receive technical assistance to build its capacity..."

Nigerian insurer Consolidated Hallmark wishes to increase its capital by $6.8 million via a private placement: "Nigerian insurer Consolidated Hallmark, which also offers life and non-life insurance services, has convened an Extraordinary General Meeting of its shareholders, at which a capital increase of N2.5 billion ($6.9 million) will be validated. The investors of this Company will have to give discharge to the Board of Directors, to proceed with the formalities aimed at obtaining the right to issue new shares that will enable it to increase its Capital from the current 5 billion naira to 7.5 billion naira. It is thus planned that 1.13 billion new shares with a nominal value of 50 Kobos (naira cents) will be created, but which will be sold to investors at 65 kobos, as part of a private placement. The identity of the investor(s) targeted by the operation is not yet known..."

The government wants to reduce dependence on biomass by 50% by 2024: "The Rwandan Government aims to reduce the country's dependence on Biomass by 50% by 2024. This information was provided by Claver Gatete, Minister of Energy, who pointed out that 83% of national energy needs are currently met by biomass. To achieve this objective, the government has implemented several strategies, including the widespread use of domestic gas, particularly for cooking. Institutions such as prisons, military and police camps, hospitals, hotels and restaurants, among others, will systematically switch to the use of domestic gas..."

The government penalizes the use of non-economic light bulbs: "The Zimbabwean government has just passed a law that punishes the purchase, sale and use of incandescent light bulbs to save energy. The use of this type of lighting makes persons liable to a fine of $50 to $100 which may be aggravated by a prison sentence. As for their sale and storage, they are punishable by a penalty of $5,000 or two years in prison. This law complements the law passed in May 2017 prohibiting the use of energy-guzzling light bulbs. Since the first measure was implemented, 200,000 light bulbs have already been confiscated and destroyed by the authorities..."