Author: Evelyn Shumba

China Development Bank

The Zambian government announced an agreement with the China Development Bank (CDB) to defer a loan repayment that fell due in October 2020.  The terms of the deal include a halt on interest payment for six months, with payment of interest expected to resume in April 2021. The principal due was also postponed and will be rescheduled over the entire loan period. Chinese lenders are not known for their flexibility which is why the deal comes as a welcome shock.

I’m glad to learn that China Development Bank has reached a debt deferral agreement with Zambia. This fully shows that in addition to official creditors, other Chinese financial institutions are also actively resolving the debt issue of Zambia and other African countries.

Wu Peng, Director-General, Department of African Affairs, MFA, China on Twitter

 

The government did not, however, disclose the size of the debt or the …

State power utility Eskom reported a loss amounting to ZAR 20.5 billion ($1.2bil) for the financial year 2020. The power producers generated revenue to the tune of R200billion($12.3bil) which failed to match up to the previous year’s revenue by 1.29%. The poor results were attributed to challenges in capacity and untenable economic climate.

The major contributing factor to the huge loss position can be traced to finance costs which came up at ZAR 31.3billion ($1.9bil). The costs in question were related to servicing a debt of ZAR 483 billion($25bil) which the company is struggling to reduce. 

The heavy debt position for Eskom is particularly distressing for South Africa as the South African government is the largest guarantor for Eskom’s debt. Eskom has also been a recipient of government bailout funding set at ZAR138 billion($8.4bil) until 2022. This heavily places a burden on the country’s budget and is a significant threat …

GreenCo Power Services, a subsidiary of Africa GreenCo has received a total of USD 1.5 million through two deals. The Danish government’s Investment Fund for Developing Countries (IFU) has committed $1 million in funding. InfraCo Africa, the investment arm of the Private Infrastructure Development Group also put in $500 000 through a convertible loan. 

The deal will see GreenCo Power services come to life to strengthen power generation capacity. Renewable energy generation will provide an innovative approach to electricity production which is set to drive Zambia’s power infrastructure significantly. 

The Zambian government is on the path to scaling up energy which ties in with the country’s vision to be a prosperous middle-income country by 2030. As part of its vision, the country intends to shore up energy availability to drive productivity in the country. This deal will therefore see GreenCo acting as a complementary partner to the Zambian government’s vision. …

The UK-based development finance institution and impact investor, CDC, invested $40 million dollars into Liquid Telecom. The deal is part of an equity arrangement initially structured in 2018 when the CDC made a $180 million dollar transaction. 

The investment will fund the expansion of Liquid Telecoms, Africa Data Centres with the aim of positioning the company as the top data center operation in Africa.

Data centers reduce costs for businesses by offering affordable data storage. In addition, the development of software as a service (Saas) applications will spur innovation and increased activities in start-ups as it allows for improved delivery of software such as office software, payroll processing, collaboration tools, and human resource management among others. 

Liquid Telecom is a communications solutions provider that offers independent fiber, data centers, and cloud technology. It operates across sub-Saharan Africa with a footprint in 13 countries. The company has built the largest fiber …

A South African health-tech company Udok has sealed $613 000 (ZAR 10 million) in Venture Capital funding from FinX capital. 

The money raised will be used to spearhead expansion. The Capetown-based startup has partnered with Clicks Stores to provide consultations in Click’s pharmacy clinics. With Clicks being one of the largest pharmacy retailers in South Africa, this will give the firm access to a large clientele base. (www.sullivansusa.net)

The company also plans to roll out laboratory testing using the Clicks network to provide lower-cost testing services for patients. Currently, the costs of laboratory testing are above the reach of many.

Founded in 2018, Udok enables individuals to access healthcare services via a digital platform. This includes virtual consultations with doctors, receiving prescriptions, and getting access to remote admissions.

The company uses smart technology for examinations during the consultation and allows users to access their health records from anywhere. …

Winners of the 2020 edition of the Private Equity Awards Africa are set to be announced on 19 November 2020. There are 19 African focused private equity firms in the running for the house of the year position.

In the previous year’s awards, the house of the year award went to Development Partners International, a firm that manages over US$1.6 billion in pan-African private equity.

Several other subcategories will rate private equity firms in terms of deal size, the exit of the year, debt and infrastructure, and a portfolio company of the year. The competition also includes a category for the best advisors and fund administrators. 

The London Business School Private Equity Institute in conjunction with the private equity awards advisory panel will make recommendations for the deserving winners.

The ultimate winners will be chosen by an autonomous panel of judges which comprises some of the …

The European Union included four African countries in its list of countries that it says pose significant threats to the financial system of the union. Uganda stayed put on the list while Ethiopia and Tunisia were dropped because of reforms they have made in tackling money laundering and terrorist funding. 

The list which was published earlier this year came into effect on the 1st of October. Included on the list are Botswana, Ghana, Zimbabwe, and Mauritius. These jurisdictions fall under the category of high-risk countries that’s show “strategic deficiencies” in their anti-money laundering and counter-terrorist financing framework.

Spotlight on Mauritius

Notable on this list is Mauritius which is a vibrant International Financial Center and has been considered the best jurisdiction to direct investments into Africa. Mauritius has tax treaties with about 18 countries on the continent 

The EU acting on the findings of the Financial Action Task Force found Mauritius …