Connect with us

Business

$15.6bn Investment Interest Generated for Lagos-Abidjan Highway in 2022, Says AfDB President Adesina

Published

on

The President of the African Development Bank Group, (AfDB), Dr. Akinwunmi Adesina, has said from the virtual Africa Investment Forum held in March this year, the bank secured $15.6 billion in investment interest for the construction of the Lagos-Abidjan Highway.

Adesina, who stated this on Wednesday at the ongoing Africa Investment Forum 2022, in Abidjan, Cote D’ Ivorie, stated that the highway, which carries 75 per cent of trade in the West Africa region, would help unleash greater growth, trade, and investment across the region.

He also stated that the forum was delivering amazing investments for Africa, adding that in four years since its commencement in 2018, it has helped to mobilise $110 billion in investment interests to Africa.

He further explained that the $600 million securitised finance to support the cocoa board of Ghana helped the West African country to grow its cocoa production by one million metric tons, with infrastructure for warehousing and cocoa processing.

He remarked that Foreign Direct Investments (FDI) in Africa declined from $47 billion in 2019, to $40 billion in 2020, because of the COVID-19, noting that Africa however recovered in 2021, as FDI rose to $83 billion, doubling the inflow in 2020.

According to him, “By 2050, Africa will account for over one quarter of the world’s population. Africa has the largest sources of renewable energy in the world. Africa has 65 per cent of the uncultivated arable land left to feed the world.

“The future of electric cars in the world depends on Africa because it has the largest sources of cobalt in the world, with massive sources of lithium in Zimbabwe, Namibia, Ghana, Mali, and Democratic Republic of Congo.

“The African Continental Free Trade Area is the largest free-trade zone in the world connecting economies worth $3.3 trillion. So, Africa cannot be ignored.

“If you are not investing in Africa, think again! Africa is the investment frontier in the world – today and in the future. Invest in Africa today, benefit from its great future.

“The Africa Investment Forum is Africa’s premier investment marketplace which helps to connect investors to Africa. Four years ago, we began a journey together which the African Development Bank, the Africa Import-Export Bank, the Trade and Development Bank, the Africa Finance Corporation, the Development Bank of South Africa, the European Investment Bank, the Islamic Development Bank and Africa 50, when we established the Africa Investment Forum.

“The landmark $24 billion Liquified Natural Gas Project of Mozambique which was structured and closed at the Africa Investment Forum, is the largest ever foreign direct investment in Africa. It will turn Mozambique into the third-largest exporter of natural gas in the world and add $66 billion to its economy.”

Speaking further, he said: “In the next 72 hours, we will have curated several investment ready projects for you as investors. These range from renewable energy hydropower, gas infrastructure, railways, roads, and water transport.

‘They include agriculture, health, mining, fertilizer manufacturing, port infrastructure, and urban green transport. They include sports, urban housing, and private equity feeder funds.”

In his remarks, the Group Chief Executive Officer, Nigerian Exchange Group, Oscar Onyema, stated that the capital market has done very well considering activities on the equity side of business, which he described as being very active, “in fact, we have had record equity trading. As you know, we have had the MTN Initial Public Offering (IPO).”

He further explained that the market has had capital raising from a number of other companies in terms of rights issues, special placements and others.

Onyema also stated that on the fixed income side, the market has seen a lot of activities in terms of issuances such as from the federal government, corporates and States.

He hinted that the capital market is a very viable and credible alternative for capital raising.

According to Onyema, “There are some challenges around requirements to be expected given that you are now in the public market, and there is a lot of retail, not just institutional, but you also have retail participation.

“The Nigeria fintech space is very active and received a lot of investments, most of them are in the private sector. Yes. And so certainly we are very keen to crowd in those types of investments into the public markets as well.

“At the exchange, I am aware that NGX is working on the technology board, which is designed to really be attracted to FinTech companies, and other high tech companies that already exist in an ecosystem.

“The Nigeria Startup bill is also good one because it gives you that legal framework under which these types of activities can be supported with the necessary institutional frameworks.”

Continue Reading
Click to comment

Leave a Reply

Votre adresse e-mail ne sera pas publiée. Les champs obligatoires sont indiqués avec *

Business

Ethiopia defaults on $33 Million bond payment

Published

on

Ethiopia officially entered default territory on Tuesday, becoming Africa’s third nation to do so within a span of three years. The failure to make a $33 million « coupon » payment on its sole international government bond underscores the country’s severe financial challenges exacerbated by the COVID-19 pandemic and a recently concluded two-year civil war in November 2022.

Ethiopia had previously announced its intention to formally default earlier this month. The payment, originally due on December 11, had a technical grace period extending until Tuesday, thanks to a 14-day clause in the $1 billion bond agreement.

Sources familiar with the situation reported that, as of the close of business on Friday, December 22, the last international banking working day before the grace period ended, bondholders had not received the expected coupon payment. Despite requests for comments, Ethiopian government officials remained silent on Friday and throughout the weekend.

This anticipated default aligns Ethiopia with two other African nations, Zambia and Ghana, which are currently undergoing a comprehensive restructuring process under the « Common Framework. »

Ethiopia initially sought debt relief under the G20-led initiative in early 2021. The civil war delayed progress, but in November, facing depleted foreign exchange reserves and surging inflation, Ethiopia’s official sector government creditors, including China, agreed to a debt service suspension deal.

Parallel negotiations with pension funds and other private sector creditors, who hold Ethiopia’s bond, collapsed on December 8. Subsequently, credit ratings agency S&P Global downgraded the bond to « Default » on December 15, based on the assumption that the coupon payment would not be fulfilled. The default places Ethiopia in a challenging economic position, requiring strategic measures to address its financial instability and navigate the complexities of debt restructuring.

 

Continue Reading

Business

TotalEnergies ready to invest $6 billion in Nigeria

Published

on

French energy giant TotalEnergies is ready to invest $6 billion (around €5.5 billion) over several years in Nigeria’s energy industry, particularly in gas and offshore projects, the Nigerian presidency has said.

« We are ready to invest $6 billion over the next few years. We are looking in depth at more opportunities for deepwater and gas production, » said TotalEnergies CEO Patrick Pouyanné, according to a presidential statement.

On Monday, Head of State Bola Ahmed Tinubu held talks with Mr Pouyanné in Abuja, the capital.

« Everything is in place. We just need to finalise the adjustments and changes needed to unlock the exceptional potential in oil and gas », continued Mr Pouyanné, according to the Presidency.

Nigeria is « very important » for TotalEnergies, which accounts for between 8% and 10% of the group’s total oil production, according to the CEO quoted in the press release.

For his part, the Nigerian president pledged to « remove all obstacles in the oil and gas industry ». « We are ready to work with you », he said.

The oil and gas major indicated that it « has a substantial portfolio of projects that could represent 6 billion dollars of investment over the next few years ».

Ten days ago, the Nigerian president’s office announced similar commitments from British oil and gas giant Shell, for USD 6 billion in offshore, natural gas and liquefied natural gas (LNG) projects.

Since his inauguration at the end of May, Bola Ahmed Tinubu has taken a series of economic measures aimed at attracting more foreign investment to this oil-producing country and member of OPEC.

A law, the Petroleum Industry Bill, adopted in 2021 after years of debate and delays, was already aimed at attracting more foreign investment in the oil sector through changes to regulations, royalties and taxes.

Nigeria has seen its oil production decline in recent years due to widespread pipeline theft, attacks, high operating costs and red tape, which have deterred investors.

Continue Reading

Business

Nigeria, Cameroon missing in top 10 best international airports in Africa

Published

on

Africa is emerging as a preferred global destination for travellers, driven by a thriving tourism and business sector. The continent’s aviation landscape is now a formidable force, fostering crucial connections between Africa and the global community.

Recently, Skytrax, a renowned international airline assessment organization, revealed its 2023 report on the Best Airports in Africa. South Africa dominated the regional ranking, with additional entries from Kenya, Morocco, Rwanda, and Mauritius.

1. Cape Town International Airport, South Africa

This is a premier international hub with modern infrastructure and a commitment to eco-friendly practices. The airport hosts 4.13 passengers per 10 square meters daily, catering to a discerning crowd.

2. King Shaka International Airport, South Africa

Located in Durban, it stands as a beacon of excellence among Africa’s best international airports. The terminal, covering 102,000 m2, can handle 7.5 million passengers annually.

3. Johannesburg International Airport, South Africa

Serving as the primary hub for domestic and international travel in South Africa. Since 2020, Africa’s fifth busiest airport with a capacity for 28 million passengers per year.

4. Casablanca International Airport, Morocco

Handled about 7.6 million passengers in 2022, ranking among the top 10 busiest airports in Africa. A hub for Royal Air Maroc, Royal Air Maroc Express, and Air Arabia Maroc.

5. Mauritius International Airport

A strategic gateway with direct flights to Africa, Asia, Australia, and Europe. Renowned for its commitment to passenger satisfaction and prime location.

6. Marrakech International Airport, Morocco

An international facility connecting Europe, the Arab world, and soon North America. Terminals designed to handle 2,500,000 passengers annually.

7. Addis Ababa International Airport, Ethiopia

Formerly Haile Selassie I International Airport, it’s the main hub for Ethiopian Airlines. Links Ethiopia and Africa to Asia, Europe, North America, and South America.

8. Kigali International Airport, Rwanda

Serving Kigali and playing a vital role in connecting Congolese, Burundian, and Ugandan cities. The terminal accommodates 1.5 million passengers annually.

9. Nairobi International Airport, Kenya

A key connection point to East African destinations, quadrupling its capacity to host 26.5 million passengers yearly.

10. Bloemfontein International Airport, South Africa

Formerly Bloemfontein International Airport, now Bram Fischer International Airport. An economic hub hosting over 300,000 passengers and 17,000 air traffic movements annually.

Source: africanews

 

Continue Reading

Trending