Nigeria Sovereign Wealth Fund's income declines by 34%.

Plus Africa Mobile Networks completes $20 million loan I Parallex Bank receives $10 million trade finance I $12 billion Green Climate Fund new Africa Investment

Apr 4, 2023

Good Day,

It was another interesting week in the world of business, economics, and finance in Africa, these are the key highlights. If you are reading this newsletter for the first time please subscribe to get these weekly updates and more. If you have already subscribed why not forward it to a friend or colleague?

In today’s email:

Asset Management: Nigeria’s Wealth Fund income declines by 34%
Infrastructure Finance: $12 billion Green Climate Funds invests in Africa
Chart: The Inflation rates of the richest African Economies
Deal Roundup: Notable deals for the week

Asset Management

Nigeria Sovereign Wealth Fund's income declines by 34%.

Nigeria’s Wealth Fund The Nigeria Sovereign Investment Authority (NSIA) reported a drop of 34% for the year 2022 compared to the previous year due to recent macroeconomic conditions. The fund’s total comprehensive income ended at N96.96 billion for 2022, a decline of 34.0% compared to N147. 98 billion in 2021. It also recorded:

Its 10th straight year of continuous positive earnings despite volatility and headwinds across global markets.
Grew its net asset by 10.5% to N1.02 trillion in 2022 (2021: N919.73 billion).
While earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5% amounting to N15.7 billion year-on-year growth.

Infrastructure Finance

$12 billion Green Climate Fund makes its biggest equity investment in Africa

Africa’s leading infrastructure solutions provider, Africa Finance Corporation( AFC), and its asset management unit AFC Capital Partners have secured a $253.7 million commitment from the Korea-based Green Climate Fund (GCF) a $12 billion global climate finance facility.

The Green Climate Fund is an initiative of the United Nations Framework Convention on climate change aim at financing and assisting developing countries in adaptation and mitigation practices to counter climate change.

The investment is considered the largest for an Africa-wide multi-country program.
The fund will invest in Africa Finance Corporation’s Infrastructure Climate Resilient Funds (ICRF).
The new commitment of $253.7 million will enable the Infrastructure Climate Resilient Funds (ICRF) to invest in climate-resilient energy, transport, logistics, telecoms and ICT across Africa.

Chart of the week

The inflation rate of the Top 10 richest African economies.

Deals

M & A :

A.P Moller Capital through its infrastructure investor's $1.5 billion emerging markets-focused fund EMIF II is to acquire South Africa frozen logistics provider Vector Logistics from RCL Foods.
The Bank of Zambia has approved Access Bank of Zambia’s acquisition of African Banking Corporation Limited and the subsequent merger of the two entities.

Fundraising :

The World Bank and Morocco have signed a $100 million financing deal for development projects launched in the city of Casablanca.
Swedish Government's development financier Swedfund has agreed to invest $5 million in the Nordic Horn of Africa Opportunities Fund, to be split into two tranches where the second tranche requires certain conditions to be met.
The World Bank through its International Development Association has approved a $145 million grant for Malawi to provide safe water, sanitation services and improved solid waste management services to the city of Blantyre.
The European Union has granted Egypt €40 million implemented by the Italian Agency for Development Cooperation, to enhance food security efforts.

Private Credit :

Africa Mobile Networks (AMN) a Telecom tower builder has closed a $20 million loan from BlueOrchard Sustainable Assets Fund (BOSAF) and OP Finnfund Global Impact Fund I. The funds will finance the deployment of mobile communication towers in rural and ultra-rural areas across Africa.
The African Development Bank Group has approved $147 million in subordinated debt to the Mauritius Commercial Bank Ltd (MCB) to enhance its capital base and mobilize loan growth.
The African Export-Import Bank (Afreximbank) has provided a $10 million trade finance facility to Nigeria’s Parallex Bank.

Private Equity :

Dutch foundation and Oxfam International affiliate Oxfam Novib and Goodwell Investment an Impact investor have set up a €20 million ($21.7 million) Pepea fund to provide venture debt with a focus on mezzanine finance to early-stage startups in Kenya, Uganda and Ethiopia.

Venture Capital :

Africa-focused Neobank Payday has raised $3 million led by Moniepoint Inc, the U.S. entity that houses Moniepoint Microfinance Bank and TeamApt Nigeria. Techstars, Angels Touch, HoaQ, DFS Lab’s Stellar Africa Fund, Ingressive Capital Fund II and angel investors such as MFS Africa chief Dare Okoudjou and Norebase CEO Tola. The new funding will be used to build its borderless payment platform.

People Moves :

Albert Larweh Asante has been appointed as an Executive Director of Standard Chartered Bank Ghana effective 21 March 2023.
Telecom Egypt has appointed Mohamed Nasr El-Din as the CEO and Managing Director.
Stanbic IBTC has announced the appointment of Mrs. Ndidi Nwuneli as the new Independent Non-Executive Director following the receipt of all required regulatory approvals.

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