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Week commencing 3 April 2018
Milost Global has ended talks to provide $1bn to Unity Bank following threats that it will be run out of the country should the deal continue. The threats appear to stem from a “politically connected individual”, and negative articles started appearing in the media. The New York-based private-equity firm had agreed to provide debt and equity on the understanding that Unity would delist in Nigeria to have its stock traded in the US, in a deal that would ultimately see it acquire a 60% stake in the Lagos-based bank.
Bloomberg 27 March
A Zimbabwean business conglomerate has secured $500m worth of deals in agriculture, mining and transport to aid Zimbabwe’s economic transformation. A $400m deal was signed with China’s Lovol which produces heavy machinery for agriculture and mining, while a $40m revolving facility was secured with Good Agro Rising for the supply of chemicals for tobacco and other export-oriented crops, and a further $80m deal was signed for the supply of irrigation. Representatives from China will be in Zimbabwe soon to assess specific irrigation requirements and technology applicable to Zimbabwe.
The Herald Zimbabwe 3 April
Private sector-lead projects geared at boosting access to power will now find it easier to secure funding, thanks to a new deal signed between Development Bank of Rwanda (BRD) and commercial banks. The multimillion-dollar agreement seeks to enable banks to finance off-grid power initiatives. It is part of the R48.94m Renewable Energy Fund project, financed by the Scaling-Up Renewable Energy Programme, a multi-donor trust fund managed by the World Bank. About 445,000 households will be connected to renewable energy solutions over the next seven years. The project is expected to increase access to electricity by more than 19%.
The New Times 28 March
The International Finance Corporation (IFC) is set to lend $10m to Kikuyu-based pharmaceutical manufacturer Universal Corporation. The proposed IFC investment will help the company finance a major investment programme to upgrade its facilities, increase its product range and strengthen its operations.
Business Daily 2 April
Dubai firm to build clothing factory
A Dubai-based textiles company, United Aryan, plans to build a clothing factory that could employ up to 10,000 workers at Olkaria geothermal fields in Naivasha to take advantage of lower electricity costs. Construction is expected to be begin in the next two years. The factory, estimated to cost $100m, will produce products for sale not only in Kenya, but across other markets such as the US and Europe.
Business Daily 1 April