29 / 07 / 2020 - Shareholding information on listed companies now available on AFRICAN MARKETS

AFRICAN MARKETS starts today the roll-out of a new “Major Shareholders” section on the updated company profiles of listed companies. The section is based on regulatory filings.
This new feature is now available on the company profiles of the below Exchanges:
• Botswana Stock Exchange (Botswana)
• BRVM (Ivory Coast)
• Ghana Stock exchange (Ghana)
• Malawi Stock Exchange (Malawi)
• Nairobi Securities Exchanges (Kenya)
• Nigerian Stock Exchange (Nigeria)
• Zimbabwe Stock Exchange (Zimbabwe)
These are the first markets that we present. Other markets will follow.

Our platform is continuously evolving. The updated company profiles are just some of the new features we have been working on recently. In the coming weeks, we plan to unveil new tools that will help investors, globally, build strong investment cases on Africa and, hopefully, cross the last frontier.
Source: African Markets

29 / 07 / 2020 - Mozambique, Total to Export Gas By 2024

29 / 07 / 2020 - Mozambique, Total to Export Gas By 2024
Mozambique plans to start exporting liquefied natural gas (LNG) by 2024 ahead of Tanzania, after Total SA secured a $14.9 billion debt facility for the construction of an LNG processing plant in Cabo Delgado Province, in the deep waters of Ruvuma Basin north of the country.
The debt financing agreement, which is the country's first onshore development, was signed on July 15, 2020.
Tanzania's LNG project -- in the natural gas-rich offshore Ruvuma Basin -- in the southeastern part of the country -- still awaits the final investment decision (FID) after the government grants project approval.
Mozambique's FID for the $20 billion LNG project was made in June 2019 and building works started in August the same year.
Total SA's chief financial officer Jean-Pierre Sbraire said Mozambique's senior debt facility -- the biggest in Africa to date -- includes funds from eight Export Credit Agencies (ECAs), 19 commercial banks and a $400 million senior loan from the African Development Bank Group (AfDB).
"This is a first in class transaction that sets a new standard for mega-projects on the African continent," said AfDB's acting General Counsel Souley Amadou on the collaboration of project sponsors, Mozambique's government, the financing parties and advisors.
Total SA is leading a consortium of firms in the project that will have a gas plant and an export terminal on the Afungi peninsula.
Total acquired a 26.5 per cent stake in the Mozambique LNG project from Occidental Petroleum for $3.9 billion in September 2019.
"The project will facilitate the development of gas-fired electricity and will play a key role in providing reliable affordable energy for the country and the wider region," said Wale Shonibare, AfDB's director for Energy Financial Solutions, Policy and Regulation.
Source: Allafrica.com

29 / 07 / 2020 - Africa: Small Businesses in Africa Must Innovate to Survive Covid-19

Dorothy Tembo is the acting Executive Director of the International Trade Centre, (ITC) a joint agency of the United Nations and the World Trade Organization. In June, the ITC launched a report titled "COVID-19: The Great Lockdown and its Impact on Small Business." In an interview with Kingsley Ighobor, Ms. Tembo discusses the report, the role of women and youth in post-pandemic recovery in Africa, among other topics. These are excerpts from the interview.
What key messages does your newly released report on COVID-19 and micro, small and medium-sized enterprises (MSMEs) convey?
The first is that MSMEs matter, and they must be at the center of any post-pandemic recovery effort. Second, there is a disruption of the global supplies that these MSMEs are a part of. The third message is that, going forward, we need to think carefully about how we support MSMEs, making sure we push in a direction of more resilient value chains that can withstand disruptions in the future.
The report states that MSMEs, especially in poor countries, are disproportionately affected by the pandemic. Why is this the case?
Poor countries face huge economic challenges. The pandemic compounded an already bad situation. For years, these countries have cried out for assistance to build infrastructure that supports economic development. In these countries, businesses are relatively small and cannot access finance. Some of these countries are landlocked and therefore the cost of doing business is much higher than in the others.
The Africa Union's Silencing the Guns 2020 campaign, if successful, could strengthen countries' resilience in recovery. Is that correct?
Absolutely. If we could have a situation where peace reigns in countries, that would be an opportunity to consolidate development efforts.
Your report paints a gloomy picture of the situation of MSMEs in Africa. For example, one in five small firms would be bankrupt within five months and $2.4 billion worth of exports is expected to be lost this year. Any good news at all?
You're right. We should not underestimate the impact of COVID-19 on countries. But I think there is a glimmer of hope. The current situation presents an opportunity to reflect on what to do going forward to enable MSMEs become more resilient. There are potential opportunities.
First is the possibility for countries and companies to start innovating, because small enterprises tend to be agile and able to adapt. For example, some companies we are working with are able to conduct e-commerce and have survived. So, innovation is a possibility in terms of existing value chains or in doing something completely new.
Second, we have an opportunity to rethink how we develop more resilient value chains that can accommodate future difficult situations.
Third is to explore more sustainable production options that, in the long term, are cheaper and environmentally friendly.
The final point is, there is an opportunity for countries to consider their product range. Many countries depend on a single or a few commodities. They could now look at a broader product range as well as diversification of markets. Africa can look at the opportunities that come with the African Continental Free Trade Area (AFCFTA) in terms of value add, within the continent, even as countries look at the global markets.
Many people believe that African youth can capably lead the innovation charge. What are your views on this?
I agree. This is something we have observed from our work with young people in Africa. If you look at some of the sectors where the shift has occurred, the digital side of things for example, it's the youth who are involved, and they are pushing the trend and showing their ability.
Also, the youth tend to think outside the box and can reposition themselves quickly. We must give them priority. They are the future and we cannot leave them behind.
Your report offers a 15-point plan of action. How do you ensure that your recommendations are implemented by the MSMEs, the business support organizations and the various governments?
The action plan provides some guidelines in terms of what the three stakeholder groups should be looking at, that is the immediate steps they can take. These guidelines were drawn from our engagement with different companies in different countries. And the guidelines speak to the core issues that are affecting these countries.
Countries see the relevance of what we're doing. They want to address the challenges they are facing. The ITC and others ensure that when countries decide to implement our recommendations, that we work with them to provide the necessary technical assistance or any required handholding.
Women constitute a huge percentage of Africans engaged in informal trade. Given that women are disproportionately affected by COVID-19, is it reasonable to suggest that they be given priority in any recovery assistance?
Absolutely, and not only because of COVID-19. Women's economic participation has been very limited. In most cases, women are not very engaged or allowed to participate in business. Even when they can participate, they're likely workers and when they own a business, they are small operations that cannot grow because of various reasons.
Women's businesses are likely to be closed as a result of the pandemic; therefore, any form of financial assistance to companies must consider the plight of women or be viewed through the gender lens. The ITC has designed a women's empowerment programme called SheTrades under which we aim to connect three million women to markets. Even now, women are unable to get the necessary information to access the resources being provided within the COVID-19 context.
Somebody told me a very interesting story about a border in southern Africa. At that border, two lines were formed: one for males and another line for females. The line for the males was cleared ahead of the one for the females. By the time the line for women was cleared, the men had been in the markets for hours and had sold their goods. These may appear simple, but they do have a huge impact on how business is conducted and how opportunity is lost.
What is the timeframe for connecting three million women to the market?
Our commitment is that by 2021 we will have connected three million women to the market. We have already gone beyond half of that number.
Given the disruptive impact of COVID-19, can you still meet the 2021 target?
I believe we can. For the simple reason that the demand to meet the Sustainable Development Goals (SDGs) is even higher now than before. I remain optimistic. We will keep pushing ourselves, understanding the challenges that we face.
How do you connect the women to the market?
We have identified some core issues that make women uncompetitive in business. One is a lack of access to finance. You still have some countries asking women for their husband's approval before accessing a loan. And interest rates for loans are too high and unaffordable.
Also, some policies don't support women's economic advancement. So, we are working with governments under the She Trades initiative to determine precisely the problems women face and try to address those problems. We must think differently regarding women's access to finance. Can we think of nontraditional ways that women can access finance?
Is such thinking going on?
Yes, it is. We are working with different partners. We are part of the SDG 500, which is an initiative that involves other UN agencies. We are collaborating with the private sector and some foundations. The objective is to mobilize about $500 million to support MSMEs, particularly those led by women, to access resources with minimal requirements.
Developing countries export a significant amount of inputs to other regions for the production of personal protective equipment (PPEs). In the context of the Africa Continental Free Trade Area, is ITC supporting Africa in producing PPEs?
Our support is much broader than just for PPEs because the foundation of the AfCFTA is trade liberalization. It's how Africa positions itself to maximize the opportunities in free trade.
In the current context, is there an opportunity for African countries to produce PPEs? Yes. And this is already starting to happen. But at what cost and are we in a position to produce to meet the demand of the entire continent? I believe there is scope for improvement because we are still importing from outside.
You were heavily involved in trade matters in your country [Zambia]. What are your views on Africa's free trade area?
I am a believer in free trade and Africa should embrace this opportunity. But what needs to happen is that the level of political commitment should increase. In operationalizing the agreement, participating countries must come through on their commitments. Africa is positioned to attract investments. It has resources for domestic production. It has human resources. We must now organize ourselves better.
What support is ITC providing MSMEs in Africa in these trying times?
Our mandate includes working with MSMEs in support of economic development in developing countries. We support countries to better understand what has confronted them [COVID-19] these last few months. Through surveys, we have information on issues specific to certain countries. Our report builds on those efforts. We have the action plan, but alongside that, we work directly with businesses so they can navigate these challenging times.
We work with businesses to find different ways of managing the business-to-business interaction that used to be face-to-face. Now businesses use online platforms to trade. We have continued to provide consolidated information through the Global Help Desk, which is a one-stop shop for all trade-related information.
What message do you have for business owners in African MSMEs?
It's a difficult time for MSMEs, for sure. They must ensure they remain resilient in this difficult period. To survive, they must build on their innovative spirit.
Source: Africa Renewal

22 / 07 / 2020 - Kenya Reluctant to Seek Comesa Shield, Opts for Rehabilitation of Sugar Factories

Kenya is reluctant to seek extension of safeguards that protect the country from importation of cheap sugar from the Common Market for Eastern and Southern Africa (Comesa).
The EastAfrican has learnt that with only seven months to the expiry of the safeguards, Kenya has realised that having lobbied for an extension twice in the past, securing another could be a tall order and that the country cannot peg the survival of the sugar industry on protection from competition.
"Kenya has not applied for an extension of the safeguards. If it will to do so, it must present the request at the meeting of the Comesa Trade and Customs Committee, which brings together technical experts from all member states," Mwangi Gakunga of the Comesa secretariat told The EastAfrican.
The safeguards allow Kenya to limit duty-free imports from Comesa countries to a maximum of 350,000 metric tonnes annually because the country is unable to compete with other member states on a duty-free quota free terms.
The government has, therefore, resolved to lease the factories hoping to turnaround the companies, which have collapsed under the weight of years of mismanagement, corruption and influx of cheap imports.
The Agriculture and Food Authority (AFA) is looking for investors to enter into long-term leases for Chemilil, Nzoia and South Nyanza sugar companies alongside Miwani and Muhoroni sugar companies, both of which are under receivership.
"The objective is to facilitate turnaround of these companies to profitability through modernisation and efficient management, which will in turn enhance competitiveness in Kenya, the East African Community, Comesa and the global sugar market," said Anthony Muriithi, AFA director general in a public statement.
To make the factories attractive to investors, the government has restructured their balance sheets including writing off massive debts, tax waivers and penalties amounting to a staggering $572.5 million.
The leasing of the companies, which the government argues is a form of privatisation, comes after the country banned the importation of raw cane and brown sugar -- the latter has rendered local mills uncompetitive due to a significant surge in imports from Uganda.
Early this month, Agriculture Cabinet Secretary Peter Munya said that unscrupulous businessmen and traders were taking advantage of the Covid-19 curfew to smuggle raw cane and brown sugar into the country through the Busia border.
Also, millers who had also obtained temporary permits to import raw cane from Uganda from September to December last year, were also illegally still importing the raw cane.
"The country may soon be faced with a sugar glut occasioned by this increased importation and an eventual collapse of the industry," said Mr Munya in press statement on July 2.
In its report, the Sugar Task Force recommended among other, establishment of production zones for particular mills and merging of some underperforming ones to attract investors.
Dr Emmanuel Manyasa, economist and country manager Twaweza East Africa, said that leasing is just a "painkiller" for an industry faced with high production costs, uneconomic dependence on smallscale farmers and whose fortunes are bound to be hit by the expiry of the Comesa safeguards.
"Privatisation failed because investors know the industry is controlled by sugar barons and they cannot make money. Even leasing is not sustainable until we deal with the cartels," he told The EastAfrican.
Kenya's sugar production cost is estimated at more than $600 per metric tonne, twice that of other key sugar-producing Comesa countries, making the country an attractive export market.
According to Dr Manyasa, Kenya might fail to seek for an extension considering that Article 61 of the Comesa treaty stipulates the country must proof it has taken the necessary and reasonable steps to overcome or correct the imbalances for which safeguard measures are being applied.
"Removal of the Comesa safeguards will kill the industry totally," said Dr Manyasa.
Source: allafrica.com

21 / 07 / 2020 - Malawi: Minister Calls for Reduction in Internet Data

Blantyre — Minister of Information, Gospel Kadzako has advised Malawi Communications Regulatory Authority (MACRA) to seriously engage mobile telecommunications companies to reduce the cost of internet data to enable more Malawians enjoy services in the communication sector.
The minister said this on Monday when he toured Malawi Communications Regulatory Authority Offices in Blantyre.
Kadzako said Information Communication Technology (ICT) is deemed to be catalyst of any economy because people use internet data to access services to contribute positively to all spheres of development.
"However, right now, to own a smart phone is like a crime because of the cost of data. Here in Malawi, Internet data is being sold at 80 cent per second and expire within the specified time usage yet in our neighboring country, Tanzania the cost of data is as less as 4 cent per second.
"In view of this, Malawians feel like they are being skinned alive and they are much worried with the development because it is the mobile companies that are celebrating for making huge profits," he said.
The minister therefore urged Malawi Communication Regulatory Authority to quickly and seriously engage the mobile communications companies to address the problem for the enjoyment of Malawians.
He added: "Should we say that we are experiencing this problem because we only have three mobile telecommunications companies in Malawi? If yes, let us engage more players because we want Malawians to enjoy ICT services without any hindrance.
"This is the new government and people are expecting to see things being done differently."
Meanwhile, the minister has challenged to conduct structural and functional review in the operation of MACRA as one way of sanitizing the institution to serve Malawians better.
"We have seen funds from this public institution being used by political parties to serve their interests. How come MACRA can use K1billion per month for its operation?
"In addition, the institution has some people who were employed because of the political party they belong to and they have not any qualification or their papers do not match with the position they hold. As such, this new government will replace these irreconcilable individuals with those who are professionals," challenged Kadzako saying: "this is not witch-hunting but dealing with the problem in a different way."
In his remarks, MACRA Director General, Henry Shamu thanked the minister for paying a courtesy call to the institution.
He then concurred with the Minister on the expensiveness of internet data assuring him to engage mobile telecommunications companies soon to amicably address Malawians concerns.
Source: Malawi News Agency
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