Atta Financial Update
Executive summary: Executive summary for the week of 05-Sep-17 to 12-Sep-17 (week 37)
Every African nation that has sold dollar debt now has at least one junk rating, but it would be hard to tell by looking at the bond market.
The average yield on sovereign Eurobonds in Africa has hovered near the lowest level in two years this month - according to Standard Bank - even after Moody’s Investors Service cut Namibia to below investment grade. The world’s biggest producer of marine diamonds had been the continent’s only dollar-bond issuer without a junk rating.
A low interest rate environment in the developed world has encouraged investors to look at African economies, notwithstanding low commodity prices, dollar shortages in some of them and rising political tension in others.
As poorly as some African economies may appear (or indeed are performing), it is still a quesiton of relative selection and most are nowhere near as problematic as they were in the 1980s, when oil plunged to US$10 a barrel. The continent’s Eurobonds have outperformed other emerging markets of late, returning investors about 9 percent in 2017 compared to 7.9 for developing nations as a whole.
Fact: Between 800–1349 the Colosseum was used as an apartment block.
Africa’s Talking is looking to raise capital from the IFC
• Africa's Talking, a Nairobi-headquartered mobile technology firm, is looking to raise a US$6 million equity investment from the IFC for an undisclosed stake
• The company provides businesses and developers on the continent with a cloud-based platform to integrate messaging, voice and video communication capabilities into their apps
EMR Capital to acquire Lubambe copper mine
• EMR Capital has acquired a controlling stake in the Lubambe copper mine in Zambia from African Rainbow Minerals and Vale for US$97.1m
• Johannesburg-listed ARM has been looking to offload its stake in the Lubambe mine since September last year when it reported a 1.4 billion Rand (US$107.9 million) impairment at the Zambian operation
• Both Vale and ARM own 40 per cent of the mine each