The Pan-African Economy in Brief: Wednesday, December 5, 2018

Kenya is considering borrowing nearly $1 billion to refinance part of its debt: "The Kenyan government is considering using a syndicated loan to mobilize 100 billion shillings (about $1 billion) to refinance two other syndicated loans contracted by the country that mature in 2019. Explaining the details of this operation, Kenyan Treasury Secretary Henry Rotich told the daily Nation, "We are using syndication to refinance a two-year syndicated loan contracted in April 2017. This is a common practice throughout the world of repaying a short-term loan and replacing it with a longer-term loan. Henry Rotich thus attempts to justify this decision of the Kenyan Government, the announcement of which has raised a heated controversy in the term about the Burden of the country's debt..."

Four local banks are injecting 120 billion CFA francs into the Nachtigal Dam construction project (420 MW): "A consortium of four local banks formed by SCB Cameroon, a local subsidiary of the Moroccan banking group Attijariwafa; Standard Chartered Bank Cameroon; BICEC, a subsidiary of the French group BPCE; and Société Générale Cameroun, have mobilized an envelope of 120 billion CFA francs to help finance the Nachtigal dam construction project (420 MW) in the central region of the country. This mobilization of funds was part of an operation arranged by Société Générale's Cameroonian subsidiary (SG), which alone invested 50 billion CFA francs, or nearly 50% of the total amount, as we learned while in Dakar, the Senegalese capital, on November 29, 2018. It was during a round table on "Structured Finance", organised by the SG Group, which aims to increase its commitments on infrastructure finance in Africa by 20% over 3 years, as part of its "Grow with Africa" programme..."

80 million euros from AFD to improve access to electricity in rural areas, starting in 2019: "Agence Française de Développement (AFD) will allocate 80 million euros (about 52.4 billion CFA francs) to Ivory Coast to improve access to electricity in rural areas. This new funding is a concrete expression of the enhanced cooperation agreement on sustainable energy signed last Thursday between the two parties. This new agreement allows Ivory Coast to benefit from AFD's support for the development of the energy sector, through financing for projects to increase or rehabilitate production capacity and access to electricity. This agreement will also promote bank credit lines for the financing of renewable energy and energy efficiency projects, and technical assistance to support the development of renewable energy..."

The CIE intends to invest approximately $6 million in a remote management project for 472,000 street lighting households: "Compagnie Ivoirienne d`Electricité (CIE) intends to invest 4 billion CFA francs (about $6.9 million) in a remote management project for 472,000 public lighting households in Ivory Coast. This was stated last Friday by the Director General of the Ivorian Electricity Company (CIE), Dominique Kakou, on the occasion of the National Days of Business Leaders (JNCE). Dominique Kakou indicated today, "All Djibi customers in Abidjan are remotely managed"; this makes it possible to carry out readings and power changes of remote subscriptions. According to the Director General of the CIE, this new vision of remote management responds to the challenges of digital transfer and value creation..."

The Royal Sheba project hosts 800,000 ounces of gold: "Pan African Resources announced on Monday that its South African Royal Sheba project, located in Barberton in Le Mpumalanga, hosts a total mineral resource of 8.97 million tons, grading 2.62 g/t gold or 800,000 ounces. According to the details of the statement, approved by Independent SRK Consulting, 370,000 ounces (5.85 million tonnes grading 1.96 g/t gold) of this total are near surface and suitable for open pit mining. This resource estimate follows a 4,311 m three-phase drilling program, which confirmed the presence of solid mineralization extending from the surface over 900 m long and 150 m down-dip from the Royal Sheba deposit..."

Agriculture will benefit from a budget of 201 billion CFA francs in 2019: "In Senegal, last Saturday, MPs voted a budget of 201.2 billion CFA francs for the agricultural sector, 4% more than in 2017, says Agence de Presse sénégalaise (APS). This increase should make it possible to strengthen the contribution of agriculture to the Senegalese economy and consolidate the performance of the agricultural sector, recorded in 2018. Cereal production has thus increased by 47%, compared to the average of the last five years, to 2.73 million tons..."