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Week commencing 4 September 2017
China Civil Engineering Corporation will build a $5,8bn hydropower station in the country’s eastern Mambila region with a capacity to generate 3,050MW. China’s Export-Import Bank will provide 85% of the funding and Nigeria will contribute the balance. The project requires the construction of four dams and includes 700km of transmission lines. The government is seeking a further $5,2bn from the World Bank to boost generation capacity, expand distribution and transmission capacity and increase access to electricity in rural areas.
Bloomberg 31 August
German insurer Allianz plans to pay $35m for a 98% stake in Nigerian insurer Ensure Insurance in a push for growth in an underserviced African market. Allianz will acquire the stake from UK-based holding company Greenoaks Global Holdings. It expects the acquisition to close this year and intends retaining Ensure’s management team. The company plans to focus on property and casualty insurance, particularly underwriting industrial and speciality risk in the energy and infrastructure sectors.
Reuters 30 August
Ethiopia has joined hands with German construction firm Eugen Schmitt Company to build an ethanol plant in the Wonjo Shoa sugar factory at an estimated cost of $51m. The German firm will own 83% of the plant with the balance shared between the state and three other shareholders. Once complete, the plant will have capacity to produce 60,000 litres of ethanol a day.
2Merkato.com 29 August
Chinese firm R&F will invest $1bn in Zimbabwe Iron and Steel (Ziscosteel) in an attempt to revive the waning steelmaker, once the largest integrated steel works in the region before it shut down in 2008. Steel output is expected to start within 18 months. Details of the deal were not made public but the scale of investment suggests R&F would have control of Ziscosteel’s stock, making it the first state-owned company to be privatised.
The Financial Gazette 29 August
Beer maker East Africa Breweries is set to significantly raise its stake in Tanzanian subsidiary Serengeti Breweries by converting a $148m loan into shares. Serengeti’s market valuation is not disclosed, but the equity injection could either suggest a complete takeover or a requirement by the minority shareholders to also inject fresh capital into the business.
Business Daily Africa 31 August