Atta Financial Update

Executive summary for the week of 05-Jul-17 to 12-Jul-17 (week 29)
South Africa, the second largest economy in Sub-Saharan Africa, has joined Kenya and other regional countries in signing of the Tripartite Free Trade Area (TFTA) aimed at easing doing business on the continent.

Johannesburg joined the FTA pact during the ministerial meeting that was held in Kampala, Uganda last week.

TFTA brings together three business regional blocs of Common Market for Eastern and Southern Africa (Comesa), East African Community (EAC) and Southern African Development Community (SADC).

Kenya is a member of Comesa and EAC.

“South Africa signed the agreement the very hour that the remaining three Annexes to the Tripartite Agreement were adopted by the ministers following the conclusion of the ministerial meeting,” said Comesa Director of Trade and Customs Francis Mangeni in a statement.

The entry of South Africa brings the total number of countries that have signed to 19.

A total of 14 ratifications are required for the agreement to enter into force.

The objectives of TFTA is to promote economic and social development of the region, create a large single market with free movement of goods and services and to promote intra-regional trade.

Fact: In 2011, China tried to pass off a scene from the film Top Gun as footage from its own air force

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

Actis sets up Africa education platform

 
  • Private equity firm Actis has created a US$275m higher education platform spanning nine countries in Africa as it looks to cater to rapidly growing educational needs
  • The pan-African initiative, which the group has branded Honoris United Universities, has brought together private universities and colleges across 48 campuses in 30 cities in Africa
  • The network spans Tunisia, Morocco, South Africa, Namibia, Zambia, Swaziland, Mauritius, Botswana and Zimbabwe





Southern African economic news (SADC)
AO, BW, LS, MW, MZ, SZ, ZM, ZW, [-TZ]

Eskom declines signing another purchase agreement

 
  • Eskom has for a second time declined to sign power purchase agreements with renewable energy project developers, and this the South Africa’s power utility seems to have a complete backing of the government
  • Just recently an inter-governmental team informed the South African Parliament that Eskom has been facing some challenges which are preventing it from signing PPAs with renewable energy project developers who had earlier secured projects through competitive auctions
  • Investments worth $4.45BN are stranded by Eskom’s decision not to sign the PPAs with the planned projects. This is not the first time that Eskom has backtracked from its commitment to sign PPAs




West African economic news (ECOWAS)
BJ, BF, CV, CI, GM, GN, GW, LR, ML, NE, NG, SN, SL, TG

Railway sector needs US$21 billion investment

 
  • The country’s railway sector needs about US$21 billion investment to bring to life the proposed railway master plan which will see the construction of a railway network in excess of 4,000 kilometres across the country
  • So far, a total length of 1,394 kilometers of the rail network has been identified by the ministry as priority projects to be constructed within the next four years

 

Nigeria’s power sector no longer attractive to investors

 
  • Nigeria’s electricity sector which was massively courted by local and international investors on the heels of its privatisation by the federal government in 2013, has finally fallen out of favour in the eyes of the same investors, the Power Sector Recovery Programme (PSRP) of the government has disclosed
  • According to the PSRP which was initiated by the federal government and World Bank, the sector has lost its appeals to both local and international investors so much that sources of funding for its big projects have dried up and left it with just two dependable funding windows – the Central Bank of Nigeria (CBN); and World Bank




Central African economic news (ECCAS)
CM, CF, TD, CG, CD, GQ, GA, ST, [-BJ]

Cameroon secures US$52 million Spanish bank loan

 
  • Cameroon has secured FCFA 30 billion (US$52 million) loan from the Deutsche Bank of Spain to strengthen the national electricity transmission
  • The deal was inked Wednesday in Yaoundé, with on behalf of Cameroon by the Minister of Economy minister Louis Paul Motaze signing for Cameroon and on behalf of the donor institution by the director of operations, Mr Antonio Navarro Escabias
  • The cash will, among others, assist the 21-months old National Electricity Transport Company (SONATREL) reinforce the grid between hydroelectric power producing town of Edea and the capital Yaoundé, with an additional transmission line