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Week commencing 21 May 2018
Chinese engineering firm Sinosteel Corporation has agreed to invest $1bn to build a power plant and increase ferrochrome output. The Chinese firm plans to build three additional furnaces at its majority-owned Zimasco business, which would raise ferrochrome output by 120,000 tonnes over the next five years to 300,000 tonnes per year and 500,000 tonnes annually in 10 years’ time. The firm also plans to build a 400MW coalbed methane-fired power plant in western Zimbabwe.
Business Day 15 May
The world’s three largest oil traders are competing to buy the African arm of Brazil’s Petrobras, which owns stakes in two major Nigerian offshore oil blocks. In 2017 Petrobras launched the sale of 100% of Petrobras Oil & Gas, or Petrobras Africa, as part of the heavily indebted company’s plan to offload $21bn in assets throughout 2018. Vitol bid together with the subsidiary of US private equity firm Warburg Pincus called Delonex and Canadian-listed Africa Energy. Glencore joined up with Nigerian-listed firm Seplat and French firm Maurel & Prom. The third bidder was privately held Famfa Oil together with Royal Dutch Shell. Petrobras is expected to make a decision by month-end.
Business Day 18 May
American energy firm GE Power has bought a $398m stake in the 1,050MW Lamu coal-fired electricity generation plant. The deal will see the US conglomerate allocated a 20% stake in Amu Power. The capital injection will be used for the acquisition of plant machinery, a boiler and steam turbine generator, as well as air quality control systems.
Business Daily 17 May
Global private investment firm TPG has paid $47.5m to acquire an unspecified stake in digital payments firm Cellulant, which operates in 11 African markets, providing digital payments platforms and mobile banking services for individuals without bank accounts. The deal is the largest investment of its kind in an African financial technology firm for TPG. It will enable Cellulant to expand into new markets and continue investing in its existing operations.
Reuters 14 May
Chinese wire and cable company ZTT Group has begun construction work on its 40,000m2 plant in the northern city of Tangier. The plant will produce electric cables and optical fibre. It will require an investment of $23.5m and offer an estimated 200 jobs.
New Times 16 May