Binnabook: Be Self Employed

Readers Stats

Search on Binnabook

Translate

Showing posts with label Be Self Employed. Show all posts
Showing posts with label Be Self Employed. Show all posts

Amazon Coming to Africa with First South Africa Headquarters

 Amazon has concluded plans to open its African headquarters in South Africa with a real estate investment of over R4 billion.

Authorities in Cape Town said Amazon would be occupying a new development in River Club, a prime section of the city, local media reported on Wednesday.


The 15-hectare parcel of land will cost R4 billion and include two precincts. Authorities said the first precinct of 60,000sqm will occupy different layers of development; while the second section of 70,000 will hold Amazon headquarters in Africa.


“The development is envisaged to take place in phases, with construction set to take place over three to five years,” Cape Town city officials said in a statement.


Over 5,000 direct construction jobs and 19,000 indirect jobs are expected to be created as a result of the move, Business Tech reported.

Ghana local firms that helped to issue $3bn Eurobond

 Five indigenous financial institutions have emerged as critical parts of the processes that led to the raising of US$3.025billion in Eurobonds for Ghana in March 2021.

The institutions - Fidelity Bank Ghana Limited, CalBank PLC, Databank Brokerage Limited, IC Securities (Ghana) Limited and Temple Investments Limited - acted as co-managers of the transaction that turned out to be the country's largest bond sale in history and featured a novel zero-coupon Eurobond, the first of its kind by an emerging market economy.


Known as co-managers in the finance parlance, the five indigenous firms played supporting roles to the joint lead managers in the issuance that was oversubscribed in spite of the grim that the COVID-19 pandemic posed to investor appetite.


The firms worked with their foreign counterparts to develop investor presentation, fashion out the liability management strategy and coordinate the logistics for the first ever virtual roadshow outside Accra.


They also helped to aggregate what turned out to be significant domestic demand for all tranches of the Eurobond, with the largest being the debut zero-coupon bond.


Experts say the demand to the local co-managers came mainly from domestic indigenous investors and that provided access for Ghanaian investors on the international capital markets.


Historically, local co-managers have contributed relatively lower amounts to the total order books.


However, in recent years, there have been improvement in the local co-managers contribution to the total order book, with each successive issuance enjoying increments.


Analysts say the successful collaboration between the local co-managers and the joint lead managers in the 2021 bond sale resulted in the oversubscription by investors and the government securing favourable interest rates for the four-tranche Eurobonds in spite of the impact of COVID-19 and the energy and the financial sectors debts on the 2020 fiscal deficit.



Novelty


The $3.025 billion Eurobond was novel as it was the largest Eurobond issuance by the country and also marked the first time a zero-coupon bond denominated in US dollar had been issued by an emerging market economy for new money or outside of a restructuring.


Of significant importance is the fact that it also marked the first time that four tranches had been issued by a SSA country.



Impressive showing


The Minister of Finance, Mr Ken Ofori-Atta, told the Daily Graphic on April 14 that he was delighted about the role of the indigenous firms in the issuance processes, explaining that their active involvement was testament that efforts by the government to develop indigenous capacity in the banking and financial sector were yielding the expected results.


Beyond helping investors domiciled in the country to access the international capital market, Mr Ofori-Atta said the arrangement ensured that almost 50 per cent of the novel zero-coupon bond was taken up by these resident investors, a development that he said was positive for the economy.


“For the first time in Africa, we have seen local managers drive significant local market participation in fund raising in a global Eurobond. Close to 50 per cent of the zero-coupon bond was taken up by the local market through the efforts of the local co-nanagers, " he said.


The Minister of Finance said the gains from the local co-managers showed the deepening of the financial sector and further expressed the commitment of the government to work with the private sector to unlock more opportunities for Ghanaian enterprises.


Mr Ofori-Atta disclosed that Ghana was currently the only country in sub-Saharan Africa (SSA) to have "logistics for global issuances managed by local entities.”


He noted that while the local co-managers supported the joint lead managers in the various streams of work, including the investor presentation, development of the liability management strategy and the logistics for the virtual roadshow, "there is the desire for local institutions to take on other lead roles in a bid to localise a significant portion of the work for global and local fund raising efforts."


Usage of proceeds


Of the amount issued, about $1.5 billion of the 2021 Eurobond, which was approved last year, is to be used to finance this year's budget deficit.


It followed elevated pressures on the public purse, following the outbreak of the COVID-19 pandemic and the rolling out of measures by the government to stop the spread and mitigate the impact on lives and livelihoods.


The government also planned to use part of the proceeds to pay off existing debts that were relatively expensive and closer to maturity.

Known as liability management, the practice helps to reduce the average cost of debt and create fiscal space for the government.


Eurobonds


The country made its debut into the Eurobond market in 2007,with the latest being in March when the government successfully raised $3.025 billion in four tranches.


Thus, while Eurobonds are not new to the country, the issuance of a four-year zero-coupon tranche was an innovative market-oriented solution to address post-COVID-19 challenges and improve the cash flow required for debt servicing.

China’s Chifeng Jilong Gold Mining Cancelled an agreement to buy the Bibiani Gold mine in Ghana

 China’s Chifeng Jilong Gold Mining on Monday cancelled an agreement to buy the Bibiani gold mine in Ghana, saying it had not received timely information from the seller about the termination of the mining lease.

Australia-based Resolute Mining agreed to sell Bibiani to Chifeng Jilong for around $105 million in December, apparently extending a flurry of Chinese M&A in the gold mining sector, only to announce last month its lease had been terminated by the Ghanaian government.


The lease was restored last week under terms that did not recognise the sale.


In a filing, Chifeng Jilong said Resolute had been told in a Nov. 6 letter from Ghana’s Minister of Lands and Natural Resources that the lease had been terminated but “did not disclose” the information.


In a statement shortly afterwards Resolute said it “will continue to consider all options for the successful development or sale of Bibiani and will provide further information in accordance with continuous disclosure requirements, as required.”


A Resolute spokeswoman said the company was not available to comment. She did not respond to Reuters’ question about Chifeng’s claim that Resolute did not disclose the letter from Ghana’s mines ministry.


The Chinese firm, which urged Resolute to refund an advance payment of around $5 million, said it only found out about the minister’s letter on March 24, when Resolute announced it had received a separate letter from the Ghanaian Minerals Commission saying the lease had been terminated.


The deal would have marked Chifeng Jilong’s second overseas acquisition, after it bought a 90% stake in the Sepon gold and copper mine in Laos in 2018.


The company said the cancellation of the Bibiani deal would not adversely affect its overall business development and operations.

Dangote Sugar Refinery Plc Commits $700 Million To Sugar Production in Nigeria

 The management of Dangote Sugar Refinery Plc has said it is committing over $700m to its sugar projects to support the Backward Integration Policy of the Federal Government to make Nigeria self-sufficient in sugar production.



According to a statement issued on Sunday by Dangote Industries Limited, the company disclosed this to visiting members of the Nasarawa House of Assembly on Friday.


The company noted that Nigeria was one of the sub-Saharan Africa’s largest importers of sugar, second only to South Africa with an annual import of over $337m.


The Dangote Sugar management however assured the lawmakers that with the completion of its sugar projects in Nasarawa and Adamawa under the BIP, the nation would be saved more than half of the forex expended on sugar imports annually.


It added that the investment would also lift its people as other people-oriented infrastructures would come with the sugar projects.


The state lawmakers commended the Dangote Group for choice of the state for the project and the accelerated pace with which the project was being executed, despite occasional delays arising from communal disagreements.


General Manager for the BIP, Dangote Sugar, John Beverley said when the factory was fully operational, it would have the capacity to crush 12,000 tons of cane per day, while 90MW power would be generated for both the company’s use and host communities.


He also disclosed that some 500km roads in all would be constructed to ease transportation within the vicinity. He solicited the support of the lawmakers in controlling the menace of land encroachment by settlers and itinerant farmers.


The Speaker of the Nasarawa State House of Assembly, Ibrahim Abdullah, and his team members, who were conducted round the company’s 78,000 hectares BIP in Tunga Awe Local Government Area commended the company for the project.


Abdullah noted that it would not only open up opportunities in the state but in Africa as a whole, and said the lawmakers were ready to partner and support the company towards the realisation of the sugar project through relevant legislations.


When the phase II of the project is completed, according to the company, it will make it the largest sugar refining plant in Africa.

Shell, Chevron, Other Oil Majors Are Leaving Nigeria Market

 Fresh insights as to why the oil majors are gradually scaling down their operations and planning their exit from the country has been unraveled.



Investigation by The Nation revealed that among the oil majors, including Royal Dutch Shell, ExxonMobil, Total and Eni, are cutting billions in spending after taking hits to their profits, thus shifting money to renewable fuels and focusing only on the most cost-effective markets.


Checks by The Nation further revealed that the country was able to attract only $3 billion, or 4%, out of the $70 billion committed on new projects in Africa between 2015 and 2019, a development experts say, does not bode well for economy which relies on oil receipts to survive.


Nigeria’s loss has been the gains of other African countries such as Angola, Sao Tome and Principe, where some of the IOCs have made major investments in recent years.


In Sao Tome & Principe for instance, is now being heavily courted by oil companies from far and near. Notably, a consortium of US firms, including Chevron Texaco and ExxonMobil where among the first to secure oil license along with a Norwegian company, EER, which netted over $70million with many other prospects.


Confirming this development, Delta State Commissioner for Environment, Hon. Onogba Christian, while fielding question from our correspondent on the sidelines of the “Stakeholders Forum on The Environment” facilitated by the Institute of Directors Nigeria (IoD) Port Harcourt chapter, said oil majors like Shell, Chevron and others may have been compelled by the present socioeconomic realities that has made the current operating environment bad for their business to plan their exit from the country.


Specifically, he said: “The first ominous signs that presented itself was the deliberate efforts by the international oil companies (IOCs) to relocate their headquarters outside the Niger Delta region. When that happened few years back, it was a bad signal.


“Of course, you cannot lay all the blame on the IOCs entirely because no businessman wants to invest in an area where insecurity is a big issue. The problem really has to do with the issue third party interference, poor legislation among other factors which are genuine reasons to affect investment decisions, he stressed.


To address this issue, the government, he maintained, must ensure that there is an enabling environment for business to thrive. “I’m convinced that once there is a level of assurance that their investments can be guaranteed many of these oil managers that have exited the country will come back,” Christain assured.


Echoing similar sentiments, Chief Prof. Jasper Jumbo, Chairman/CEO, Niger Delta Projects Consortium Limited, said, “Nobody wants to do business in an environment of chaos. Once peaceful co-existence is a challenge no business can survive under such a circumstance.”


International energy companies working in Nigeria are worried that proposals in the country’s long-delayed oil industry law will deter investment in new offshore projects.


In a joint presentation, the OPTS urged lawmakers to remove a proposed hydrocarbon tax as producers will still be subject to companies income tax.


“Our review of the Petroleum Industry Bill shows that deepwater provisions do not provide a favorable environment for future investments and for the launching of new projects,” Mike Sangster, managing director of Total SE’s Nigeria unit, told lawmakers at a hearing in Abuja, the capital recently.


To boost new investment, the proposed law should grant deepwater oil projects full royalty relief for the first five years of production or a graduated royalty program, said Sangster, speaking on behalf of the Oil Producers Trade Section, a group of 30 producers including Total, Royal Dutch Shell Plc, Exxon Mobil Corp., Chevron Corp. and Eni SpA, which he chairs.


The bill — legislation that’s two decades in the making — will streamline how Nigeria’s energy assets are operated and funded. First presented in parliament in 2008, progress in passing the bill was held up by political wrangling and objections from international oil companies that say the government is demanding an excessive increase in revenues.


The persistent failure to pass the bill “has been a major drag” on the oil and gas sector, Ahmad Lawan, president of Nigeria’s Senate, said last January as he opened two days of public hearings on the proposed legislation. The delays have harmed the country’s ability to “attract both local and foreign capital” at a time of greater competition with other resource-rich nations, he said.



Cuba Adopts Cryptocurrency as Part of Communist Party Agenda

 Cryptocurrency is now officially part of the Communist Party agenda in Cuba. Over the weekend, Cuba’s government adopted a proposal to incl...

BINNABOOK BLOG POSTS


BINNAPARLOUR BLOG POST


MOST READ POST


COPYRIGHT: All rights reserved. This material and any other material on this platform may not be reproduced, published, written in full or in part, without written permission from BINNABOOK PUBLISHERS.But you can share through the social Media