6 African Business November 2019
Business Intelligence Deals
Zimbabwe has cancelled a deal aimed at reviving the state’s railway company, the National Railways of Zimbabwe (NRZ). The $400m deal struck in 2017 involved South African state-owned logistics company Transnet, and the Diaspora Infrastructure Development Group (DIDG), an association of Zimbabwean investors.
Zimbabwe’s information ministry claims the deal was cancelled because DIDG missed multiple proof-of-funding deadlines. Additionally, differences between the funding parties resulted in a funding structure laid out by the DIDG that excluded Transnet, said the ministry. The government will issue a new tender that will be open to Transnet and DIDG.
Algeria buys stake in pipeline Sonatrach, Algeria’s stateowned oil and gas company, and Spanish utility company Naturgy have agreed to buy the 42% stake that Abu Dhabi’s state fund Mubadala owns in the Medgaz pipeline, a deepwater pipeline which transports natural gas from Algeria to Spain. The agreement, which values the infrastructure at $2.1bn including debt, is due be completed by the end of March 2020. It will make Sonatrach the majority shareholder with a 51% stake whilst Naturgy would own the remaining 49%.
Zimbabwe cancels national railway revival deal
CDC signs risk sharing facility with ABSA CDC Group, the UK’s development finance institution and impact investor, has announced a $75m risk sharing facility with South African banking firm Absa Group. The facility represents one of CDC’s largest trade finance commitments on the continent. The funded and unfunded facility will support Absa in increasing its lines of credit to other banks across Africa. Subsequently, these banks can increase their trade finance offering to local business clients. The facility will also enable Absa to expand its network of local banks, particularly into the harder to reach African markets.
Nigeria’s female-led private equity firm launches vehicle Nigeria’s Aruwa Capital M anagement, a femalefounded and led private equity firm, has launched a $20m co-investment vehicle focused on closing the gender equality gap in West Africa. The vehicle has completed its first deal with Nigerian personal hygiene company Wemy Industries, which manufacturers affordable products for women. The Lagos-based manufacturer has around 200 employees and six production lines. Wemy’s CEO said: “The investment will enable us [to] increase our capacity significantly across all of our production lines and grow in both our domestic and export markets.”