8 African Business April 2020
Business Intelligence Deals
The Africa Fertilizer Financing Mechanism has launched a $2.2m project to provide support to fertiliser suppliers in Nigeria
Nigerian fertiliser suppliers receive financial support
The Africa Fertilizer Financing Mechanism has launched a $2.2m project to provide fertiliser suppliers in Nigeria with financial support to improve supply for 200,000 smallholder farmers. The trade credit guarantee project is AFFM’s first in the West African nation and will involve 10 fertiliser suppliers, 12 hub agro-dealers and 120 retail agro-dealers. The project will also train farmers in proper fertiliser use and other agricultural best practices.
Sasol plans rights issue and asset sales South African fuel manufacturer Sasol is aiming to generate $6bn by the end of 2021 after the oil-price crash and $12.8bn of cost overruns at a Louisiana project plunged its share price to the lowest level in 21 years. The measures could include a $2bn rights issue and asset sales of more than an initially planned $2bn. It plans to make a cash improvement of $1bn by June and is in talks with lenders to ensure flexibility on covenants.
Burger King in South Africa generated a profit of R11.7m last year
Republic of Congo seeks $1.7bn debt restructuring The Republic of the Congo is seeking to renegotiate $1.7bn of debt with Swiss-based commodity traders Trafigura and Glencore in order to ease the way to further IMF assistance. Talks broke down in January after the firms rejected a proposed haircut on the deal. The IMF has so far disbursed $45m of a $449m, three-year lending programme agreed in July but a restructure of the loans is a condition for further support. The country’s debt burden is $9.5bn.
AfDB signs first loan agreement with Sudanese private sector The African Development Bank has signed a loan agreement of up to $75m with DAL Group, one of Sudan’s largest private sector conglomerates, to improve food security and household incomes in the country. The agreement is the bank’s first private sector loan to the East African nation. The loan will contribute to DAL Group’s investment programme, which aims to reduce the nation’s dependence on imports and increase its capacity to source and produce raw material locally.