Arcelor Mittal makes another West African project investment

After all of the controversy surrounding and now subsiding with regards to the giant steel company’s (claiming to produce 10% of total world output) dealings with Liberia’s transitional government and newly elected government of President Sirleaf, Arcelor Mittal has announced a similar $2.2 billion mining project in Senegal.  As in the case of the Liberia project, Arcelor Mittal has placed emphasis on railway and port construction but this time, instead of rehabiltation of exisitng infrastructure, will build a new 750 km railway linking the mines to a newly developed  port near Dakar.  See Arcelor Mittal website http://www.arcelormittal.com/ and recent articles on the Liberia and Senegal projects http://allafrica.com/stories/200702090922.html and http://news.bbc.co.uk/2/hi/business/6389237.stm.

Actis Africa Agribusiness Fund Pumps money into GBHL in Mombasa

Tom Mogusu from The Standard Reports:

Actis, a private equity investor in emerging markets, has invested Sh1.05 billion ($15 million) in the Mombasa-based Grain Bulk Handlers Limited (GBHL).

The firm on Tuesday announced that it had made its first investment in the agri-business infrastructure in Kenya since it was launched in April 2006.

The new funding will go towards putting up what it described as state-of-the-art integrated grain terminal at the Mombasa port.

“This investment makes Actis a significant minority shareholder in GBHL,” said Mr Andrew Tillery, an Investment Principal at Actis.

Hu’s Natural Resource Safari

China’s Hu Visits S. Africa After Criticism in Zambia (Update2)
The Chinese leadership has made its way through the continent brokering deals with African leaders willing to take on a new stakeholder in Africa’s economies. Allen Cheng and Karl Maier from www.bloomberg.com write of the recent Sino-African relationship: Also see Dr. George Ayittey’s remarks on China’s increasing involvement in Africa.

By Allen T. Cheng and Karl Maier

Feb. 6 (Bloomberg) — China’s President Hu Jintao arrives in South Africa today near the end of a 12-day, eight-nation tour which has attracted more scrutiny of how China is using its clout on the continent than his previous two visits.

South African President Thabo Mbeki, who last month warned against China developing a colonial relationship with Africa, is scheduled to sign agreements with Hu that will boost fruit and other exports and on mineral and energy cooperation.

Ag exports from Kenya gain access to US market

 Standard Reporter

http://www.eastandard.net/hm_news/news.php?articleid=1143964448The United States Congress has approved three Kenyan horticultural products for export to the American market beginning this month.

The Chairman of the Fresh Produce Exporters Association of Kenya (FPEAK) Mr Hasit Shah announced that the congress last month allowed Kenyan exporters to market peas, carrots and corn to the lucrative US markets.

Tiku was speaking during a cocktail hosted for agricultural experts from the United States Department of Agriculture and Animal Plant Health Inspection Service who were in the country to evaluate Kenya’s preparedness and capacity in meeting US conditions for horticultural exports.

The FPEAK boss said Kenyan exporters are diversifying from the traditional European Union markets to the US and South East Asia due to competition posed by emerging exporters like Egypt, Morocco and Central America on EU markets.

Discussions continue on private capital flows from the U.S. to Africa

Article from Panapress. 

African, US executives promote investment in Africa

Published: 01-FEB-07

Nairobi – At least 500 African and American business executives are expected to meet in Houston, USA on February 7th to promote foreign direct investments into Sub-Saharan Africa.

Organisers said the executives will be participating in the first US International Investment and Finance Forum for Projects, Trade, Development and Capital Equipment.

The forum is being hosted by a US-based equipment company, EquipXp in conjunction with Nigeria Community and Friends/NCF Investment Inc., an organisation of Nigerian businessmen and women based in the US.

Interesting Analysis on World Cup 2010 and the Construction Sector in SA

From Sean’s Investment Review http://investreview.wordpress.com/2007/01/23/construction-sector-update/

Construction sector update

January 23, 2007 at 8:53 am | In Companies, Economy |

The Construction and Materials Index has been a sector of the market that has received quite a bit of attention since South Africa was awarded the rights to host the 2010 Soccer World Cup in May 2004. This attention has been justified, owing to South Africa’s shortage in stadia with sufficient capacity to host the largest sporting event on the earth.

Companies such as Murray and Roberts, PPC, and Group 5 will all be beneficiaries in the massive infrastructure spend over the next few years, both directly in the stadia, but also to the supporting systems, such as roads, rail (Gautrain) and upgrading of the airports.

Press Corp. Ltd. leads the pack of stocks gaining value on Malawi Stock Exchange (MSE)

From The Malawi Nation http://www.nationmalawi.com/articles.asp?articleID=20435

 Expectations of good results from most listed companies has created some panic buying on the local bourse with investors dying to make a quick killing through dividends.
According to last week’s Malawi Stock Exchange (MSE) trading commentary, the market saw seven of the 11 listed companies having their shares gaining in value as investors scrambled for the limited stocks on the bourse.
Topping the list of price gainers was Press Corporation Limited (PCL) which has been enjoying good times on the equity market. Its shares gained a massive K15.50 to close the week at K117.50 each.

African Development Bank launches $100mn Nigerian Bond to be issued by Standard Bank, listed on Luxembourg Stock Exchange

I found this breakdown quite interesting: “Nalletamby said the issue was received with enthusiasm, attracting investors from the United States Offshore (52%), the United Kingdom (31%), Continental Europe (15%), and the Middle East (2%), with banks accounting for $22mn, funds and asset managers $77.9mn, and retail, $0.1mn”.  

From Panapress:

AfDB launches $100mn Nigerian bond

Published: 23-JAN-07

Lagos – The African Development (AfDB) has successfully launched its first bond issue denominated in the Nigerian naira, worth $100mn, with one year maturity and a fixed coupon of 9.25 percent.

“This is a remarkable achievement for the bank: it is the first NGN-denominated note to be issued by a supranational; it is the bank’s largest issue denominated in a local currency to date; and it is the bank’s first issue with an Africa-based lead manager—Standard Bank, Africa’s largest bank by capital,” the AfDB Group’s treasurer, Stefan Nalletamby, said.

According to the Bank’s release on Monday, “The note is listed on the Luxembourg Stock Exchange and clears through Euroclear and Clearstream.”

Moreover, the note has led to the first cross-currency interest rate swap executed by a domestic Nigerian bank – First Bank of Nigeria, Standard Bank’s partial hedge counter-party, it added.

The AfDB described the note as the first investment-grade money-market instrument that offers non-residents exposure to Nigeria while allowing trading flexibility and settlement through international clearing houses.

Nalletamby said the issue was received with enthusiasm, attracting investors from the United States Offshore (52%), the United Kingdom (31%), Continental Europe (15%), and the Middle East (2%), with banks accounting for $22mn, funds and asset managers $77.9mn, and retail, $0.1mn.

The Naira bond, which launched last week, follows sales last year in the Botswana Pula, Tanzanian Shillings and Ghanaian Cedi.

Nalletamby said the AfDB “may sell debt in other African countries later this year,” adding, “other markets in Africa are under consideration as well as re-issuance in markets that the bank has already opened. -panapress

BLACKOUTS: SA Infrastructure to get a boost from EU

Generator sales were again on the rise as South African businesses saw another round of blackouts due to electricity supply problems.  At the same time, the European Investment Bank (EIB) just committed 900 million Euros for infrastructural investments to be made over the next seven years. Aging infrastructure and increased pressure from rising populations of migrant workers in cities like Johannesburg necessitate this type of investment. In the meantime, Eskom is under great pressure and is losing the faith of the business community and potential investors.

Top banks no longer trust Eskom after power cuts 

http://www.businessday.co.za/articles/weekender.aspx?ID=BD4A363103

The sector is spending millions on generators and uniterrupted power supply systems to ensure that it can keep operating when blackouts hit writes KHULU PHASIWE

SOUTH Africa’s major banks have signalled that they can no longer rely on parastatal provider Eskom for electricity after countrywide blackouts this week, and will be implementing measures to guarantee uninterrupted power.

One of SA’s largest retail banks, First National Bank (FNB), will spend R50m this year alone to buy backup generators and uninterrupted power supply (UPS) units to guard against the adverse effects of power outages similar to those that hit most of the country this week. The emergency power suppliers would be installed in all FNB branches across the country.

Increase in global liquidity results in more Africa-based assets in investors’ portfolios

South Africa has been a likely target of portfolio managers looking for larger yields with relative certainty. Now what will debt relief and increased commodity prices provide other African countries facing demands from donors not to build up another round of debt? Private sector issuance, this article mentions, needs a benchmark for future private capital flows to base future investments.   

Africa: More Liquidity in African Markets Now

Business Day (Johannesburg)

January 18, 2007
Posted to the web January 18, 2007

Ayanda Shezi
Johannesburg

AFRICAN markets are overcoming their historical liquidity problems and attracting increased, sustainable portfolio flows.

This in part reflects an improved picture in many of the continent’s economies, according to Standard Chartered economist Razia Khan.