TrueLayer joins Open Banking Nigeria, Inside Equity Fund invests in Zambia , Co-operative Bank of Kenya acquires Jamii Bora Bank.
This is your 4-minute roundup of this week’s most important business, finance and markets news dominating Africa.
Tell a friend or colleague who needs to be well informed by signing up here .
Kenya’s interest rate remains stable at 7 percent interest rate during the June 2020 meeting to cushion the economy from the pandemic have contributed to the stability.
Egypt maintains the current interest-rate as inflation had fallen and economic growth is expected while lockdown eased down .
Some interesting notes :
TrueLayer provider of financial APIs has joined Open Banking Nigeria, the industry-formed advocacy group driving the adoption of open banking in Nigeria to facilitate the development of API standards in the Nigerian market and help the unbanked access the growing financial services in the Nigerian markets.
New Fertiliser and Ammonia Plants in Nigeria and Ghana to be Operational by 2024. Morocco’s OCP Group expects the plants to be operational by 2024 creating an additional 2 million to its global capacity. The expansion is part of the drive to push the use of phosphates-based fertilisers in Africa.
Private Equity Deals
French Company Proparco invests $30 million in AfricInvest IV Fund. The fund is dedicated to developing small and medium companies in Africa.
Kenya an African investment hotspot is proposing new measures that will scrutinise the books of Private Equity and Venture Capital that have raised funds from public funds like pension funds.
Inside Equity Fund has invested $2.75 million in Zambia-based Alpha Polyplast Ltd a leading manufacturer of recycled PET strapping. The investment will be used to double its waste collection and processing capacity.
Venture Capital Deals:
Egyptian fintech platform Moneyfellows announced a Series A investment of $4 million from Partech and Sawari Ventures. The investment will be used to expand the company’s operations in Egypt and across Africa.
South African-based start-up SmartWage which partners with companies to give employees instant access to their wages has raised R6m for further expansion of their product offering. The fundraising was led by Chris Lister-James of the Johannesburg-based seed investor, Fitech Ventures.
Ingressive Capital a Nigerian Venture Capital has raised a new $10 million fund with investments from new limited partners like the Nigeria Sovereign Investment Authority (NSIA), Platform Capital, and US-based Plexo Capital. The new fund will be used to make pre-seed and seed-stage investments high growth African start-ups
M & A Activities
The Co-operative Bank of Kenya disclosed that it has offered Sh1 billion for a 90 percent stake in Jamii Bora Bank ahead of its shareholders’ meeting on July 1 to consider the transaction. The new arrangement means existing shareholders will not receive any cash in the deal with the Co-op Bank.
Nigeria’s FCMB group has entered into a discussion to acquire the 70 percent stake in AIICO which, if it goes ahead, would make AIICO an indirect subsidiary of FCMB.
Kenyan Bank, Equity Group signed an agreement to buy a 66.5 percent stake in the DRC’s Banque Commerciale Du Congo from George Arthur Forrest for $105 million but will only pay the final Sh2 billion after two years to protect itself from unforeseen liabilities.
Liquidity Actions :
Eurobond holders in Zambia have formed a committee to open talks with the government on the country’s debt status ahead of the first Eurobond payout of $750 million in September.
Standard Bank, Africa’s largest bank by assets, has committed to helping the growth of green energy on the continent. This year, in addition to strict controls around lending to coal mining companies, the bank received a new set of proposed resolutions to adopt a policy on lending to fossil fuel activities and to assess the climate risk.
Ghana’s Cocoa Board is to unveil a $600 million loan scheme for key sector projects. The scheme is established by Development Finance Institutions (DFI) to provide funding for key investment projects in the cocoa industry, at a ceremony on Tuesday. The board confirmed it has earmarked a number of projects including the production of cocoa beans for processing – where the funds will be applied to strengthen the local cocoa industry.
South Africa Government Sells More Bonds to Tackle Budget Deficit. The National Treasure announced this week that it will increase the amounts of government bonds sold at weekly auctions for the second time this year. Finance Minister Tito Mboweni said that the government is making the move to ease pressure on the local bond market as South Africa’s budget deficit widened to 15.7 percent of gross domestic product. The amounts on offer at fixed-rate auctions will rise by 500 million Rand ($29 million) to 6.6 billion Rand from July 7.
The Sovereign Fund of Egypt has named Abdalla ElEbiary as chief investment officer this week. Abdalla ElEbiary previously worked as a Managing Director for Qalaa Holdings, an investment firm, for 14 years.
Thanks for reading Africa Finance Review! Have an excellent week ahead. Please send us any feedback or news suggestions to firstname.lastname@example.org. Please ask your friends and colleagues to sign up.