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6 African Business February 2024 Business Intelligence Deals Loan management system aims to help agriculture in Zimbabwe Ghana gets $300m from the World Bank and $600m from the IMF A bond for 75bn West African CFA francs ($124m) has been issued by a Fonds Commun de Titrisation de Créance securitisation vehicle to support the expansion of West African telecoms carrier Sonatel. Sonatal operates fixed and mobile telephony, mobile banking, television and internet ser vices in Senegal, Mali, Guinea, Sierra Leone, and Guinea Bissau. The new finance is intended to boost the company’s network and improve its technology and equipment, including subsea cables, new telecom towers and the rollout of 5G. The Emerging Infrastructure Africa Fund will commit 23.5bn francs ($39m) to the issuance and will act as an anchor investor alongside the International Finance Corporation. The AFC Land and Development Bank of Zimbabwe has rolled out a new loan management and e-voucher system to support agriculture in the country, in partnership with the UN’s Food and Agriculture Organization (FAO) and the Zimbabwe government. The system, funded by the African Development Bank, aims to improve the availability of certified seeds and fertiliser by using ICT-based platforms and existing private sectorbased distribution channels. “The main objective of the project is to increase cereal and oil seed production, fertiliser distribution and policy support to drive food security and build the resilience of farmers,” the FAO said. Ghana has reached agreement to restructure $5.4bn of loans with its official creditors in a milestone debt relief deal. The agreement in principle with Ghana’s Official Creditors’ Committee under the G20 Common Framework unlocked $300m from the World Bank. It is the first in a series of three $300m disbursements under the World Bank’s Resilient Recovery Development Policy Operation. Following the agreement Ghana also received a disbursement of about $600m from the IMF, part of its $3bn bailout programme with the institution, as it looks to recover from a severe economic crisis. Sonatel gets $124m for telecom network towers and cables Côte d’Ivoire issues the first sub-Saharan Eurobonds in two years More sub-Saharan African countries could head to the Eurobond market after Côte d’Ivoire issued the first Eurobonds in the region in two years, according to S&P Global Ratings. Côte d’Ivoire’s issuance consisted of a $1.1bn tranche of ESGlabelled Eurobonds – bonds which meet environmental, social, and governance standards. It has a final maturity of nine years and a yield of 7.875%. Another $1.5bn Eurobond tranche has a final maturity of 13 years and a yield of 8.5%. “Even though Côte d’Ivoire’s issuance occurred when international financing conditions remained tight, the order book reached a record high for the country of over $8bn. In our view, this illustrates that investors retain their appetite for the country’s debt, albeit at a higher price. The issuance could also pave the way for other Eurobond issuances in the region,” S&P said.
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February 2024 African Business 7 Business Intelligence News Ethiopian Airlines does not use the 737 MAX 9 model which malfunctioned in the US – but, Harry Clynch reports, recently signed a bumper deal with Boeing for other aircraft. US aviation manufacturing giant Boeing is again facing questions over the safety of its aircraft after one of its 737 MAX 9 planes, operated by Alaska Airlines, lost part of its fuselage mid-flight from Portland to Ontario on 5 January. That incident focused attention on the safety of Boeing’s planes, so that there was widespread coverage of an unrelated mishap when one of the nose wheels fell off a Delta Air Lines Boeing 757 jet (an older model) on a taxiway at Atlanta’s international airport on 20 January. In November last year Ethiopian announced that it had agreed to order eleven 787 Dreamliner and twenty 737 MAX 8 planes from Boeing, with the option to purchase more of both at a later date, in what is the largestever purchase of Boeing planes from an airline in Africa. Ethiopian Airlines already operates the largest Dreamliner fleet in Africa. At the time, Ethiopian was keen to emphasise the closeness of its relationship with Boeing, which had come under scrutiny following the Flight 302 disaster in March 2019, Ethiopia’s deadliest aircraft accident. This crash involved a Boeing 737 MAX 8 that malfunctioned shortly after take-off in Addis Ababa, killing all 157 people onboard, and leading to a two-year worldwide grounding of the model. When approached by African Business, Boeing pointed out that Ethiopian Airlines does not use the 737 MAX 9 model but referred to commitments made by its CEO Dave Calhoun. He said that Boeing would take “all actions that are required to ensure every next airplane that moves into the sky is in fact safe and that this event can never happen again”. Ethiopian Airlines could not be reached for comment. When the deal was signed last year, Ethiopian Airlines CEO Mesfin Tesaw (b e l ow) said that “we have solidified our decades-old exemplary business partnership with Boeing... We believe we have checked and confirmed that the design defect of that aircraft has been fully corrected by Boeing.” In another sign of how strong ties between the two companies have become, in December Boeing appointed former Ethiopian Airlines vice-president Henok Teferra Shawl as the new managing director for Boeing Africa, as part of its plans to use Ethiopia as a base for Could Boeing’s safety troubles impact Ethiopian Airlines relationship? wider expansion into the African market. ‘Put its house in order’ Speaking after the 5 January incident, Chidozie Uzoezie, aviation analyst and founder of the African Aviation Group, tells African Business that Boeing’s recent difficulties should be “an isolated case with no ‘spill-over’ effect on Ethiopian Airlines,” given that it does not use the 737 MAX 9 model that malfunctioned on 5 January. Nevertheless, he says that Boeing needs to “put its house in order”. “I absolutely have no safety concerns regarding the current Boeing models operated by Ethiopian Airlines,” Uzoezie says. “For long haul, Ethiopian Airlines operates the Boeing 777 and the 787, which are two of the world’s most successful widebody aircraft. For short haul, the airline operates the Boeing 737 NG/ MAX, which have impressive safety records.” “Being the most scrutinised aircraft model in the world [following the Flight 302 disaster], the Boeing 737 MAX 8 is now one of the safest aircraft models in the sky today,” he adds. For these reasons, Uzoezie believes that Ethiopian Airlines will continue to have confidence in Boeing despite the questions being raised over the safety of another model. “Ethiopian Airlines is a longstanding Boeing customer. They have enjoyed a beneficial business relationship for many decades,” he says. “I don’t think that the recent MAX 9 issue will negatively impact the business relationship.” “However, I’d like to think that the safety of passengers and crew is Ethiopian Airlines’ top priority – so if Boeing fails to put its house in order with respect to safe and reliable products, Ethiopian Airlines may be forced to look elsewhere in terms of fleet.”

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6 African Business February 2024

Business Intelligence Deals

Loan management system aims to help agriculture in Zimbabwe

Ghana gets $300m from the World Bank and $600m from the IMF

A bond for 75bn West African CFA francs ($124m) has been issued by a Fonds Commun de Titrisation de Créance securitisation vehicle to support the expansion of West African telecoms carrier Sonatel. Sonatal operates fixed and mobile telephony, mobile banking, television and internet ser vices in Senegal, Mali, Guinea, Sierra Leone, and Guinea Bissau. The new finance is intended to boost the company’s network and improve its technology and equipment, including subsea cables, new telecom towers and the rollout of 5G. The Emerging Infrastructure Africa Fund will commit 23.5bn francs ($39m) to the issuance and will act as an anchor investor alongside the International Finance Corporation.

The AFC Land and Development Bank of Zimbabwe has rolled out a new loan management and e-voucher system to support agriculture in the country, in partnership with the UN’s Food and Agriculture Organization (FAO) and the Zimbabwe government. The system, funded by the African Development Bank, aims to improve the availability of certified seeds and fertiliser by using ICT-based platforms and existing private sectorbased distribution channels. “The main objective of the project is to increase cereal and oil seed production, fertiliser distribution and policy support to drive food security and build the resilience of farmers,” the FAO said.

Ghana has reached agreement to restructure $5.4bn of loans with its official creditors in a milestone debt relief deal. The agreement in principle with Ghana’s Official Creditors’ Committee under the G20 Common Framework unlocked $300m from the World Bank. It is the first in a series of three $300m disbursements under the World Bank’s Resilient Recovery Development Policy Operation. Following the agreement Ghana also received a disbursement of about $600m from the IMF, part of its $3bn bailout programme with the institution, as it looks to recover from a severe economic crisis.

Sonatel gets $124m for telecom network towers and cables

Côte d’Ivoire issues the first sub-Saharan Eurobonds in two years

More sub-Saharan African countries could head to the Eurobond market after Côte d’Ivoire issued the first Eurobonds in the region in two years, according to S&P Global Ratings. Côte d’Ivoire’s issuance consisted of a $1.1bn tranche of ESGlabelled Eurobonds – bonds which meet environmental, social, and governance standards. It has a final maturity of nine years and a yield of 7.875%. Another $1.5bn Eurobond tranche has a final maturity of 13 years and a yield of 8.5%. “Even though Côte d’Ivoire’s issuance occurred when international financing conditions remained tight, the order book reached a record high for the country of over $8bn. In our view, this illustrates that investors retain their appetite for the country’s debt, albeit at a higher price. The issuance could also pave the way for other Eurobond issuances in the region,” S&P said.

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