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…

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…

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…

The US and China, two of the world’s biggest superpowers, are currently in the midst of a trade war. The battle centres around the uneven trade deficit between the two countries. While Africa may not be a direct participant of the war, there is a risk of the continent getting caught in the crossfire.  The Titans At War   In 1995, the US-China trade deficit stood at around $45 billion in favour of China. By 2018, the trade deficit had reached approximately $420 billion.   The ballooning deficit triggered a response from the American administration which accused China of unfair trade practices and intellectual property theft.  Both parties…

Imagine an Africa where farmers can detect parasites in their livestock by a simple scan of a handheld machine. Where road networks allow swift transportation of produce to markets. Where farmers can access finance and be adequately insured against natural disasters by a simple click of a button.   The reality across the continent is one of  underdeveloped, underserved rural areas. Women dressed in traditional garb carry buckets of water over long distances. There is no electricity or running water and very little internet access. According to World Bank statistics 56% of Africans live in rural communities. Recent trends have shown a high…

The African continent takes pride in its rich natural resources. The continent boasts of a wide range of minerals, oil, gas, and wildlife among many other commodities. Most African economies are heavily dependent on these resources. Revenue for most is mainly commodity-driven for example, Botswana’s diamonds make up 90% of the country’s total exports. In Nigeria, oil accounts for more than 80% of exports and Zambia is reliant on its copper mines for 70% of its exports.   In the majority of cases, African countries are net exporters of the raw commodity making them more vulnerable to the price shocks and…

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…

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.…

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 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…