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Week commencing 17 July 2017
International oil companies are expected to relinquish interest in oil blocks worth more than $13bn which are expected to expire between 2017 and 2019. About 17 Niger Delta onshore oil mining leases belonging to the Shell Petroleum Development Company of Nigeria will expire in the next two years. If the companies do not renew the licences, it opens opportunities for indigenous investors to buy the assets and boost the Nigerian participation in the nation’s petroleum industry. Three oil companies have divested from 24 leases in the past three years, giving indigenous oil firms the chance to invest $10bn to acquire the assets.
The Guardian Nigeria 13 July
Dangote Group, controlled by Aliko Dangote, Africa’s richest man, plans to invest $3.8bn in sugar and rice and $800m in dairy production in the next three years as the company seeks to expand and deal with a shortage of dollars in its home market of Nigeria. The conglomerate plans to increase its production of sugar to 1.5-million tonnes a year by 2020 from 100,000Mt, and is seeking to add 1Mt of rice. The company is also planning to have 50,000 cattle producing 500-million litres of milk a year by 2019.
Bloomberg 11 July
Pan-African private equity firm Phatisa has agreed to buy JSE-listed Torre Industries’ remaining interest in Kanu Equipment. The transaction increases Phatisa’s shareholding to 85%, with the balance being held by Kanu’s management. Financial terms of the deal were not disclosed. The deal is being transacted through Phatisa’s $246m African Agriculture Fund. The fund originally backed Kanu in June 2016, spending approximately $15m to acquire a 40% stake in the pan-African agricultural and construction equipment distributor.
Africa Capital Digest 9 July
Tigo and Bharti Airtel are putting the final touches on plans to sell a quarter of their shares through an initial public offering. The firms have submitted their prospectuses and seek to list domestically. Figures from the Tanzania Communications Regulatory Authority rank Tigo and Airtel as the second-and third-largest telecoms, with a market share of 29% and 26% respectively. Tigo recorded 11,7-million subscribers in 2016, with Airtel a close second with 10,5-million.
Corporate Digest 10 July
Seventeen agreements on investment projects totaling $250m were signed in Rabat for the implementation of industrial ecosystems launched in the automotive and aeronautical sectors. The investment agreements are expected to generate turnover of around $800m and create 14,230 direct jobs.
Morocco World News 7 July