November 2012 Whisperings on African Business Developments and Opportunities by Africa Project Access – November 2012
At the recent IMF/World Bank annual meetings in Tokyo, there was considerable interest in the successful implementation of EUROBONDS BY AFRICAN GOVERNMENTS. Read about this story and more.This success will enhance their ability to finance much-needed infrastructure. The USD 750 million Zambian Eurobond issue was launched in September 2012 and was oversubscribed fifteen times. There is a USD 11.9 billion order book for the ten-year bond which is trading at a 5,3% yield. Namibia issued its debut USD 500 million bond in October 2011 and this was oversubscribed five and a half times. Rwanda is scheduled to commence its bond issue in two to three years. Bond issues do not necessarily have to be large but there is a need to educate the populace regarding security and benefit.
There have been calls from representatives of South African ICT companies for the South African government to accept their offer of PRO BONO ASSISTANCE FOR THE ROLL OUT OF ICT INFRASTRUCTURE IN SOUTH AFRICA. They are proposing the creation of a forum of private ICT specialists to advise the Government on an ongoing basis. They point out that a number of the expensive tenders being issued by Government are not necessary as the required technology is freely available. South Africa is falling behind other African countries such as Kenya in improving efficiencies through the effective application of ICT.
Those wishing to access OIL AND GAS COMPANIES IN AFRICA should consider making contact with them through the specialised engineering firms subcontracted by such companies. These includeSCHLUMBERGER, HALLIBURTON AND BAKER HUGHES. These firms are for example all active in the gas projects currently being developed in northern Mozambique.
The PUBLIC PRIVATE PARTNERSHIP (PPP) AGENCY OF ZAMBIA has been moved from the Ministry of Finance to the Zambia Development Agency (ZDA). This should improve efficiencies as the ZDA is far more business-orientated.
There is an urgent need for African Governments to develop the legal framework for the implementation of POWER PURCHASE AGREEMENTS (PPAs). This is necessary to facilitate the renewable energy sector.
CORPORATE SOCIAL INVESTMENT PROGRAMMES in Africa present major opportunities for suppliers. A good example is the COCA-COLA AFRICA FOUNDATION PROGRAMME. Projects include the ‘Replenish Africa Initiative’ involving water supply to households. In Cape Verde, some 20 000 households will be supplied. Foundation agriculture projects include fruit juice plants in Uganda and Kenya. The ‘Project Last Mile’ involves the application of the Foundation’s experience in distribution systems. Coca‑Cola is now selling over one billion unit cases per annum to Africa. Africa takes 12% of world-wide sales. The company ascribes these achievements to the growing African middle class.
The national mining utility of the Democratic Republic of the Congo GECAMINES IS REVIEWING ALL ITS MINING JOINT VENTURES. This will concern Freeport McMoRan which operates the Tenke Fungurume copper mine in Katanga and Glencore which has Katanga Mining among other concession-holders. There is strong debate over the award of mining concessions. ENRC took over concessions previously held by First Quantum Minerals. The Chinese company that took over Anvil Mining’s operations does not appear to be fully active.
Africa Project Access is a South African company providing specialist consulting services and information regarding projects in Africa. Its contact details are –
Contact person: Paul Runge
Telephone: +27(0)11 465 6770
Fax: +27(0)11 465 9580