MTN Nigeria significant worth, New Africa Private Creditor Group

Welcome to our weekly round up of the most important matters dominating the world of business, finance and markets in Africa.

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1) MTN Nigeria has rapidly risen to become one of the most valued companies on African financial markets, with a market capitalisation currently worth $5.83 billion. The company has seen its value rise above that of its parent company MTN South Africa since August 9, 2019.

Why it matters : This is reflective of the growth potential of the Nigeria market, with strong mobile penetration rates, a youthful and technology savvy population who are changing status quo of old business models.

2). A group of Africa focused Private Creditors have set up a group called (AfricaPCWG) to represent private creditors and assist with coordination with African countries and other debt providers to contain the economic impact of COVID-19 across the African continent.

Why it matters : Africa leaders are presenting a credible case for for debt reduction or cancellation due to the impact of the COVID-19, but unlike before this might be a hard sell with nation and creditors impacted by the economic realisation of COVID-19.

3) Global giant Airbus announced its new partnership with Koniku this week. The Californian based company uses biology accompanied by silicone technology in arriving at solutions. Koniku’s partnership with Airbus is focussed on aircraft and airport security.

Why it matters : Africa start-ups are becoming quite resourceful, in adopting global practices while modifying them for African and leveraging partnerships like this to bring change.

Private Equity Deals :

  • Sunfunder, a solar energy investor in Africa, announced that the four new loans takes the company over $100m invested in distributed solar in Africa and other emerging regions.The new investment is from M-KOPA in Kenya and PEG Africa in Ghana – as well as long-term financing for the solarisation of Orange’s telecom towers in the Central African Republic by energy solutions provider CREI.

Venture Capital Deals :

  • Brimore an Egyptian end-to-end distribution start-up raises $3.5 million in funding round led by Algebra Ventures and participated in by 500 Start-ups, Disruptech, Vision Tech, and Flat6labs.

  • African start-ups have another $100 million in VC to pitch for after Novastar Ventures latest raise. The Nairobi and Lagos-based investment group announced it has closed $108 million in new commitments to launch its Africa Fund II, which brings Novastar’s total capital to $200 million.

  • Malawi based Fintech Zoona, a company specialising in the development of technological payment solutions, has sold its operations in Malawi to Mukuru, the international cash transfer firm in Africa and Asia, for an undisclosed amount.

M & A

  • Convergence Partners completes acquisition of Vodacom Business Africa in Nigeria, Zambia, and Côte d’Ivoire aimed to position itself as a unified pan-African provider of cloud and digital services, offering a suite of next-generation technology solutions.

  • Helios expands tower business in South Africa through acquisition of 65 additional mobile-phone tower sites from Eagle Towers Ltd as it expands its presence in Africa’s most industrialised economy.

  • ACWA Power has announced the completion of the transaction to introduce Silk Road Fund as a partner and 49 per cent shareholder in ACWA Power Renewable Energy Holding Ltd (ACWA Power RenewCo).

Liquidity Actions:

  • Bank of Ghana holds key rate, surprises with bonds purchase : Ghana’s central bank left its key interest rate unchanged at 14.5% on Friday and said it had concluded a $1 billion repo facility with the U.S. Federal Reserve to improve the country’s foreign exchange liquidity. The bank had triggered an emergency financing provision allowing it to increase purchases of government securities has purchased 5.5 billion cedis ($958 million) of the government’s COVID-19 relief bond.

  • Egypt’s central bank keeps interest rates unchanged during May: The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided Thursday, May 14, to keep overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 9.25 percent, 10.25 percent, and 9.75 percent, respectively.

By Africa Finance Review

A weekly newsletter covering the most important business, finance, and markets news dominating fast changing Africa.

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