Atta Financial Update

Executive summary for the week of 10-Jan-17 to 17-Jan-17 (week 3)
Mega deals in Africa.

Tanzania has signed a US$1 billion partnership agreement with a Chinese firm to commercialise cassava farming and processing, raising hopes to growers who have been grappling with the challenge of accessing reliable markets; and, the Ethiopian Roads Authority (ERA) has signed road construction agreement worth US$2.8 billion with domestic and foreign contractors to boost road construction projects in the country.

In Tanzania: the investment will include the establishment of an industrial park comprising of factories to produce cassava flour, cassava starch, animal feeds, organic fartilizer and paper pulp. The next phase will include production of industrial sugar and ethanol. While in Ethiopia, the 372 km road projects should be completed in a three- year time period, create 5,000 jobs, and need one-hundred million kg's of cement.

Promising to see 2017 begin with such significant projects.

Fact: To fix a typo on a plane ticket, a British man found it was cheaper to change his name and get a new passport than pay the airline’s name-change fee – he did it

African Private Equity News (PE)
African focused private equity funds

Quantum Global to acquire the Mövenpick in Accra

 
  • Quantum Global Africa Investments to acquire Mövenpick Ambassador Hotel in Accra from Kingdom Holding Company
  • The acquisition values the Mövenpick at US$100 million
  • This transaction represents the largest open market hotel transaction in sub-Saharan Africa to date

Letshego to acquire afb Ghana

 
  • Letshego Holdings, announcing its second acquisition in West Africa and acquiring a 100% shareholding in afb Ghana
  • afb is a licensed non-bank financial institution and offers innovative credit products to over 60 000 customers across its network of more than 25 branch and customer access points

IFC looking at a €20 million (US$21.3m) loan to Bounty Brands

 
  • Bounty Brands is a consumer goods platform owned by South African private equity investment holding company Coast2Coast
  • The debt will be used for the company’s acquisition plans and regional expansion activities over the next few years in preparation for an eventual IPO

East African economic news (EAC)
BI, KE, RW, TZ, UG

Tough going for small banks in Kenya at present

 
  • The Central Bank of Kenya (CBK) has continued to drain excess liquidity from the market for the second week running, signalling tough times for banks that rely on the regulator for survival
  • In just two weeks, CBK has withdrawn Sh55 billion from matured reverse repurchase agreements (reverse repos), a departure from last year’s strategy where it was rolling over matured instruments to keep money in the market (US$529m)
  • The sustained liquidity mop-up has been necessitated by the need to prop up the shilling following its free fall in recent weeks