Blog

The Pan-African Economy in Brief: Tuesday, February 12, 2019

MOZAMBIQUE:
A first specific timetable for the final investment decision for Zone 1:
At a meeting in New Delhi, India, with local gas sector stakeholders, Omar Mitha, the general manager of the Mozambique Public Hydrocarbon Company (ENH) said the final investment decision for Offshore 1 should be made between March and April. So far, all seven project partners have announced it for the first half of this year. This is therefore the first time that a specific timetable has been announced for this block located to the east of the Rovuma basin. It should be recalled that the final investment decision is a step on the basis of which banks may agree to grant credit lines for a particular project. This announcement is mainly reinforced by the signing by Anadarko and its partners of several sales and purchase agreements (SPAs) for liquefied natural gas intended for local production. The size of the deposit in presence is 75 Tcf...


IVORY COAST:
New taxes, for a cumulative amount of 7%, on mobile money:
Already suffering from the high cost of living, Ivorians will have to pay even more for mobile money transfers. A 7% increase in mobile money transaction rates has been in effect since February 1, 2019, announces the National Union of Telecommunications Companies (Doe). In a press release, the organisation in charge of defending the interests of telecom/ICT operators states that this increase was made in application of new taxes to mobile money transfer companies, contained in the tax annex to Act No. 2018-984 of 28 December 2018 on the State budget for the year 2019...


SOUTH AFRICA:
Announcement of a new $37.4 million fund dedicated to technology companies:
South African investment companies Newtown Partners and LionPride Investment Holdings have announced their intention to launch a fund called LionPride Agility. With commitments of R500 million or $37.4 million, this entity will invest in early-stage technology companies in the financial services, on-demand services, agriculture, health and renewable energy sectors. "LionPride Agility is a fund that offers a choice of two share classes with the possibility of risk-weighted returns. The two unique themes on which to invest are: Impact Investing and Emerging Technologies," commented Deven Govender, CEO of LionPride...


NIGERIA:
Nigeria's oil production is expected to start declining from 2020 onwards:
According to the Nigerian Oil and Gas Upstream Report of the Afrinvest Investment Bank's research centre, Nigerian oil production is expected to begin a phase of decline after 2020. The report released this week explains that deep-sea exploration had slowed considerably due to the fiscal uncertainty caused by the failure to adopt the new Petroleum Industry Bill. The document was initially drafted in 2008. Analysts indicated that without clarity on financial terms, exploration would not be a priority for international oil companies, as they already had large stocks of undeveloped discoveries, both onshore and in deep waters...


ANGOLA:
The Angolan Commercial and Business Bank loses its licence:
The Banque angolaise de commerce et d'affaires (BANC) has had its banking licence withdrawn by the Banque nationale d'Angola (BNA) due to the inability of its shareholders to raise the capital necessary to meet the minimum legal requirements. According to a statement from the central bank, the bank had an inadequate governance model. A situation that has led to serious financial deficiencies, which have led to the technical failure of the institution bank...


NAMIBIA:
Impact Oil & Gas has made a place for itself alongside Total on Block 2912:
On Friday, the exploration company Impact Oil & Gas signed a farm-out agreement with the French group Total on Block 2912, with a view to its integration on the permit. Once the agreement is validated, the permit, which is currently 100% controlled by Total, will be managed 66.11% by Total, 18.89% by Impact and 15% by the Namibian public oil company, Namcor. This very deep water block covers approximately 7,933 km2 and is located immediately west of Block 2913B, off Namibia (also owned by Impact, Total and Namcor), where the Venus well is expected to be drilled this year by Total, the block operator...


MALI:
Towards a joint venture between Altus and Indiana Resources on two gold projects:
In Mali, the Lakanfla and Tabakorole gold projects could be developed by a joint venture between mining companies Altus Strategies and Indiana Resources. The two companies have signed a non-binding memorandum of understanding to form a joint venture on the two projects where historical drilling has intercepted gold mineralization. According to the details published, on Thursday, Indiana will acquire, subject to the signing of a definitive agreement, an 85% interest in Legend Mali, Altus' subsidiary holding the two assets. To do so, it will finance exploration and project development, make milestone payments and grant its "future partner" a 2.5% royalty on net smelter revenues...