6 African Business June 2021
Business Intelligence Deals
South African energy and chemical company Sasol has sold a 30% stake in Republic of Mozambique Pipeline Investments Company (ROMPCO) to a consortium featuring Reatile, a South African black-owned energy investor, and African Infrastructure Investment Managers. ROMPCO owns and operates the 865km high pressure gas pipeline connecting the Pande and Temane gas fields in Mozambique with South Africa. The deal is worth R4.1bn ($294m) plus a deferred payment of up to R1bn if certain agreed milestones are achieved by 30 June 2024. Sasol will retain a 20% shareholding and will continue to operate and maintain the pipeline.
Ex-Tullow CEO targets assets of retreating energy majors
Paul McDade, the former chief executive of Tullow Oil, has launched an Africafocused company to buy up oil and gas production assets from retreating energy majors. McDade has led the takeover of Aim-listed Sterling Energy, which will be renamed Afentra. The company, backed by fund managers and investor Richard Griffiths, will target assets in West Africa and elsewhere on the continent which McDade believes will become increasingly available as majors scale back.
IFAD funds aquaculture development programme in Tanzania
The International Fund for Agricultural Development (IFAD) has launched a $77.4m project in Tanzania to aid 260,000 rural households facing the impacts of climate change. The Agriculture and Fisheries Development Programme will provide 13,000 tonnes of seeds to farmers, develop kitchen gardens and support aquaculture development facilities to produce 25m tilapia fingerlings and 10m catfish. IFAD is providing a $58.8m loan, Tanzania will provide $7.7m, $8.4m will come from the private sector and $2.4m from the beneficiaries.
Sasol sells 30% stake in Mozambique gas pipeline
IMF approves financing for Sudan debt relief
The IMF executive board has approved a financing plan that will help mobilise resources needed for the IMF to cover its share of debt relief to Sudan. The plan relies on a broad effort of IMF member countries, including cash grants and contributions derived from IMF internal resources. IMF managing director Kristina Georgieva said the plan marked “a critical step in helping Sudan advance the process of normalising relations with the international community”. A week later, at a conference for Sudan in Paris on 17 May, French President Emmanuel Macron said his country was in favour of cancelling the $5bn it is owed by Khartoum.
Sasol headquarters in Sandton, Johannesburg.