Here are three big stories from Africa’s business and policy landscape you (probably) didn’t miss but should keep in mind this week:
Zambia secures milestone debt restructuring deal with bondholders
On Thursday, Zambia announced that it had achieved a significant milestone in its prolonged debt restructuring efforts by reaching a preliminary agreement with a key creditor group. This landmark agreement involves the proposed restructuring of $3 billion worth of international bonds, including three existing bonds. The restructuring plan entails the issuance of two new types of bonds referred to as “amortising bonds”, with maturity dates set for 2035 and 2053 respectively. These bonds are designed to allocate repayments towards both the interest and principal amounts, based on an economic “base case” scenario.
World Bank grants South Africa $1 Billion loan to tackle power crisis
The World Bank has given its approval for a $1 billion loan directed at assisting South Africa in revitalizing its energy sector. This follows South Africa’s efforts to tackle frequent power outages that have hindered economic progress. The World Bank expressed its intention to back South Africa’s efforts to restructure its struggling power company, Eskom, and facilitate the transition towards a low-carbon economy, as stated in an official release. Last month, Marie Francoise Marie-Nelly, the World Bank’s director for South Africa, disclosed that discussions about the loan were underway and that it could be finalized in the near future.
Patricia insists repayment plan is on course despite DLM Trust company’s withdrawal
Patricia, a Nigerian cryptocurrency company, intends to proceed with its plan to reimburse customer funds despite the withdrawal of its escrow trustee, DLM Trust. Patricia previously announced its collaboration with DLM Trust to manage the repayment of $2 million in customer funds lost to a hack. However, one day after this announcement, the SEC-licensed trust company decided to terminate all its engagements with Patricia and will not be continuing with the process of distributing refunds. The reason behind this abrupt withdrawal, as disclosed by an individual with direct knowledge of the matter, was attributed to negative media coverage and “multiple breaches in the terms and conditions of the agreement and trust.”
ICYMI: Market roundup
Nigeria’s equities market moved upward over a 5-day trading week, the NGX All-Share Index appreciated by 0.33% to close the week at 67,136.58. The top gainers were Chams Holding Company Plc (27.52%), Geregu Power Plc. (20.63%), Multiverse Mining Plc (19.85%), UACN Plc. (19.09%), and Tantalizers Plc (-10.43%). The top decliners were VFD Group Plc (-18.98%), Consolidated Hallmark Insurance Plc (-16.00%), Secure Electronic Technology Plc (-10.00%), Sunu Assurances Nigeria Plc (-10.00%), and Mcnichols Plc (-9.68%).
- The naira closed the week at ₦789.94/$1 on Friday at the investor’s and Exporters’ window.
- Brent crude closed the week at $89.50 while US West Texas Intermediate (WTI) crude closed at $84.51.
- The global cryptocurrency market cap stood at $ 1.17 trillion, as of Monday, the 30th of September. Bitcoin stood at $34,556.35, a 1.35%, increase over the week, Ethereum also increased by 1.95% to trade at $1,796.20. And Binance coin increased by 0.62% over the week, to trade at $227.19.
- US-based cleantech startup, Husk Power Systems raised $103 million in Series D, which includes $43 million in equity and $60 million in debt financing. The funding confirms its leading position in providing an AI-enabled platform of renewable energy services to rural communities in South Asia and sub-Saharan Africa.
- Sukhiba Connect, a Kenyan social commerce startup, raised $1.5 million in funding to expand its operations beyond the country’s borders.
