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Week commencing 16 April 2018
East African banking group Diamond Trust Bank has been selected to acquire Kenya’s Imperial Bank in an effort to revive the troubled lender that was placed in administration more than two years ago. The listed lender’s bid won in a process that will see Diamond Trust acquire both the assets and liabilities of the collapsed bank. Negotiations over the acquisition of the assets are ongoing.
Bloomberg 12 April
A $3.5bn inter-city expressway, Kenya’s second-biggest infrastructure project since independence, will be delayed amid concerns by lawmakers that East Africa’s largest economy is taking on too much debt. While Kenya is ramping up construction of much-needed infrastructure to underpin economic growth, the cost of the mega projects has stirred concern that the debt is unsustainable for the $71bn economy. The nation’s debt could rise to 58% of gross domestic product by the end of June, from 40.6 % in the 2011-12 fiscal year. Construction of the 473km, four-lane highway will be undertaken by San Francisco-based engineering firm Bechtel Group, which has arranged commercial loans for Kenya to undertake the project.
Bloomberg 13 April
Takura Capital, a Zimbabwean private equity firm, has invested an undisclosed sum in Mozambican vegetable producer Companhia do Vanduzi. The acquisition followed a bidding process managed by Verdant Capital, a corporate finance firm based in Mauritius. The sale of Vanduzi is the second transaction Verdant has completed in Mozambique since 2016.
Africa Global Funds 8 April
More than 1,000 Liberians in are set to benefit from a new steel plant being developed by Pan African steel manufacturer, Sethi Brothers. The plant is expected to provide job opportunities for locals who will be trained by experts from Ghana. The mass production of steel rods is expected to eventually reduce the price of the commodity on the local market.
Daily Observer 9 April
Austrian medical services company Vamed has signed a four-year maintenance contract with Tripoli Medical Centre. The contract will enable Vamed to resume its maintenance of stalled medical equipment and devices at the centre, and to work on replacing non-serviceable devices with modern devices. The value of the new contract has not been disclosed.
Libya Business News 10 April