Africa Finance Review Team

Corporate Debt

Pick n Pay renegotiates debt ahead of its Boxer Brand's IPO.

South Africa's leading grocer, Pick n Pay, is in renegotiation talks with FirstRand over its loan commitment as it prepares for the IPO of its Boxer Brand. The South African retailer has been facing financial challenges, which have affected its customer engagement and supply chain. It needs an

Bonds

African Export-Import Bank and Africa Finance Corporation lead Ecobank Transnational Incorporated(ETI)'s $250 million Bridge-to-Bond Facility.

Ecobank Transnational Incorporated (ETI) has signed a $250 million senior bridge-to-bond loan facility led by The African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC), which serve as the Global Coordinators and Initial Mandated Lead Arrangers. The initial twelve-month loan will support Ecobank Transnational Incorporated's trade finance and

Ratings

Ivory Coast's Economic Reform spurs Africa's Highest Sovereign Rating by Moody's

Moody's upgrades Ivory Coast to Ba2, two levels under investment grade. Deemed one of Africa's promising economies, Ivory Coast has embarked on an economic program over 2023-2026 to ensure macroeconomic stability and boost private investment to grow its economy. The country has also achieved a manageable

Merger and Acquisition

Canal+ increases MultiChoice acquisition offer to $2.9 Billion.

Vivendi SE’s Canal+ French mass media holding company has increased its offer bid to $2.9 billion for MultiChoice the African leading entertainment company. Why is this important: The African pay TV market is expected to grow consistently over the next five years; according to reports from Digital TV

Bonds

High yields treasury bills drive Ghanaian banks’ exceptional profitability.

Ghanaian banks are experiencing exceptional profitability due to high yields on the country's treasury bills. Monetary policy initiatives by the Bank of Ghana in 2022, including restructuring domestic debt instruments, resulted in losses to domestic bondholders. According to reports by Fitch, the country's banking sector reported

Economics

Egypt targets $55 billion investment in 2023-2024 fiscal year to boost economy.

Egypt expects to generate $55 billion worth of investment in the current fiscal year to boost its economy. The North African country has been facing an ongoing economic crisis, with the Egyptian pound losing around 50% of its value since 2022, high inflation and a budget deficit of 7.0%

Infrastructure Finance

US Digital Infrastructure Operator Equinix to invest $390 million to build Africa Data Centres.

Global data centre and colocation provider Equinix is investing $390 million to build data centres across Africa. Why is this important: The continent's internet penetration worldwide with data consumption expected to increase by 45% annually until 2025. With the continent's growing population, the demand for storage

Economics

Africa's best-performing currency since the start of 2024.

Zambia's kwacha has rallied 13.8% to 22.8 against the dollar since the start of this year. Why is this important: The country's central bank, the Bank of Zambia, continues to tighten its monetary policy by raising the monetary policy rate by 150 basis points

Infrastructure Finance

Afreximbank and Africa Finance Corp invest $40 million in new Nigerian Health Centre.

African Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), in close collaboration with King’s College Hospital, London, have invested $40 million in The African Medical Centre of Excellence, Abuja (AMCE Abuja). Why is this important: Nigeria's healthcare infrastructure remains underdeveloped, with poor healthcare compensation and a

Mali's State Energy Company looks to restructure $989 million debt.

Energy du Mali SA, the state energy company of Mali, is in talks with banks to restructure its 600 billion CFA franc ($989 million) debt. Mali continues to experience incessant power cuts across the country's major cities affecting businesses and key economic activities. The country's energy

Sovereign Debt

Niger misses $22 million principal payment on one-year bond.

The Nigerien government missed a 13.4 billion CFA franc ($22 million) principal payment on a one-year bond due in February 2024. Why is this important: The West African country was subject to a coup last year, resulting in The Economic Community of West African States( ECOWAS) suspending all commercial

Sustainability Finance, Cote d'Ivoire

Cote d'Ivoire and IMF agree $1.3billion Resilience and Sustainability Facility.

The International Monetary Fund and Côte d'Ivoire have agreed to a $1.3 billion Resilience and Sustainability facility to fight climate change. Why is this important: Côte d'Ivoire is the top cocoa producer in the world, and its agriculture sector is exposed and vulnerable to climate

BlackRock Fund acquires stake in Africa's largest wind farm.

BlackRock's Climate Finance Partnership, a public-private finance fund, has acquired a 12.5 per cent stake in Kenya’s Lake Turkana Wind Power (LTWP) from Danish turbine manufacturer Vestas. Why is this important: The 310-megawatt (MW) Lake Turkana Wind Power farm, which supplies renewable energy to Kenya'

Uganda signs $400 million Green Hydrogen Deal.

Uganda has signed a development agreement with the Westgass International and Industrial Promotion Services (IPS) for a $400 million hydrogen fertiliser plant. Why is this important? In 2021, Uganda imported $37.94 million worth of fertiliser, according to the United Nations COMTRADE database, which has increased over the years. The

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Economics

Africa's Promising Economies

Monetary Policy, Economics

Zimbabwe to create new currency board and link currency to gold.

Zimbabwe is exploring options to create a new currency board to stabilise the Zimbabwean dollar and link it to hard assets like gold. The Zimbabwe dollar has lost 94% of its value since January 2023. The government recently introduced a ' structured currency' to address the rapid devaluation of

Sports, South Africa

South African Rugby Union secures $75 million investment by PE firm Ackerley Sports Group.

The South African Rugby Union (SARU), the governing body of the Spingboks, has received a $75 million investment from Ackerley Sports Group, subject to approval by the SARU members. Why is this important? The business of Sports is becoming an emerging trend across the world, from football to Golf. Most

Bonds

Kenya confident of repaying $2bn Eurobond due in June

Kenya seems confident they can repay the $2 billion Eurobond due in June. Let's go deeper: The country has a debt profile of around $61.5 billion, which is around 67 per cent of its gross domestic product( GDP), with a 29 per cent currency devaluation against the

Finance

What Mastercard sees in MTN's $5.2 billion Fintech Business

Global financial services firm Mastercard has acquired a minority stake in the Fintech business of MTN Group Limited, the South African multinational corporation and mobile telecommunications provider. Let's go deeper: MTN's CEO indicated last year that the company was willing to sell 30% of the fintech

Economics

Zambia joins Botswana and DRC to become Commercial Sellers of their Commodities.

Zambia, like Botswana and the Democratic Republic of Congo, is trying to implement a new economic playbook, selling its commodities directly to buyers. Why is this important: The current revenue-sharing model, where mining rights are allocated to companies like First Quantum Minerals and Barrick Gold to operate the mines and

infrastructure

AfDB Eager to Close Kenya and Tanzania's $309.26 Million Electricity Deal

The Africa Development Bank (AfDB) is keen to get the $309 million Kenya/Tanzania electricity deal agreed. Why is this important: Kenya imports hydroelectricity from Ethiopia and Uganda, while Tanzania rations power due to low hydro generation. The tripartite deal will boost the electricity supply and cut reliance on expensive

Bonds

Afreximbank acts as Joint Global Coordinator on BADEA‘s first €500M Social Bond

The African Export-Import Bank (Afreximbank) has successfully acted as a Joint Global Coordinator for the Arab Bank for Economic Development in Africa's (BADEA) first €500m RegS-only senior unsecured social bond. The issue is under BADEA’s new Euro Medium Term Note (EMTN) programme on the London Stock Exchange,

Cote d’Ivoire's successful Eurobond sale spurs Kenya's early bonds buyback.

Cote d’Ivoire’s successful Eurobond outing has signalled rising investors' appetite for African countries’ sovereign debt, giving Kenya the encouragement it needs to return to the international debt market to raise funds. Kenya's President William Ruto gave all indications during last week's Italy-Africa Summit

Briefings

This Week in Africa Finance

Plus AfDB's new $2 Billion three-year Social Global Benchmark Bond, Growth Investment Partners(GIP)'s new investment, FMO's $10 million investment, Ivory Coast's successful return to the international debt market and other notable deals and market activities. Eurobond Ivory Coast Achieves $8 Billion

AfDB Launches $2 Billion Three-Year Social Global Benchmark Bond.

The African Development Bank (AfDB) has launched and priced a $2 billion three-year Social Global Benchmark, its first social bond issued under its new sustainable bond framework established in September 2023. Why is this important: The bond will enhance the bank's existing green and social bond programme, by