Tradeque https://tradeque.co Exclusive African Business News & Trade Deals Tue, 03 Sep 2024 14:10:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://i0.wp.com/tradeque.co/wp-content/uploads/2024/08/cropped-Tradeque-Favico.png?fit=32%2C32&ssl=1 Tradeque https://tradeque.co 32 32 230929372 Shoprite to Divest Furniture Business to Pepkor https://tradeque.co/2024/09/03/shoprite-to-divest-furniture-business-to-pepkor/ https://tradeque.co/2024/09/03/shoprite-to-divest-furniture-business-to-pepkor/#respond Tue, 03 Sep 2024 13:31:25 +0000 https://tradeque.co/?p=388 Read More]]> South Africa’s biggest grocery retailer, Shoprite (SHPJ.J) has agreed to sell its furniture business including the OK Furniture and House & Home brands to discount retailer Pepkor, the companies said on Tuesday.

“The purchase consideration represents about 4% of Pepkor’s market capitalisation and will be settled in cash,” Pepkor, whose market value was 80.49 billion rand ($4.50 billion) on Monday, said in a statement.
That suggests a price about 3.2 billion rand ($179 million).
Pepkor will get a business operating more than 400 stores in South Africa, Botswana, Lesotho, Namibia, Eswatini and Zambia. The deal excludes the Angola and Mozambique operations.
It also includes the Shoprite Furniture credit loan book and related insurance arrangements in addition to inventory and certain fixed assets, Pepkor said.
Shoprite CEO Pieter Engelbrecht said in a separate statement that the supermarket group wanted to focus on its core grocery operations.
“We found ourselves at a crossroad with the business’s future growth and profitability hamstrung by the requirement of a level of investment that would have resulted in us re-directing capital and project management resources away from that currently dedicated to our food retail operations,” he said.
Shoprite’s furniture business contributed 7.2 billion rand or 3% to Shoprite’s group last full-year sales of 240.7 billion rand.
Pepkor already runs a Lifestyle business unit that comprises six household furniture, appliances and consumer electronics retail brands.
“The proposed transaction will allow Pepkor to expand its value proposition through a complementary product mix in furniture, bedding, appliances and consumer electronics, while also expanding its presence in under-represented regions,” it said.
($1 = 17.8907 rand)
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Ethiopian Airlines has announced the suspension of its flights to Eritrea. https://tradeque.co/2024/09/03/ethiopian-airlines-has-announced-the-suspension-of-its-flights-to-eritrea/ https://tradeque.co/2024/09/03/ethiopian-airlines-has-announced-the-suspension-of-its-flights-to-eritrea/#respond Tue, 03 Sep 2024 11:41:41 +0000 https://tradeque.co/?p=392 Read More]]> Ethiopia’s state-owned carrier Ethiopian Airlines said it has suspended flights to neighbouring Eritrea, citing unspecified difficult operating conditions.
Eritrea had previously said it would suspend all Ethiopian Airlines flights at the end of this month.
Flights from Ethiopia to Eritrea had resumed in 2018 after two decades, following a peace deal and resumption of diplomatic relations between the two neighbours that earned Ethiopia’s Prime Minister Abiy Ahmed a Nobel peace prize a year later.
Five diplomats told Tradeque the suspension was a tangible signal that the relationship between Asmara and Addis had soured significantly, but said the risk of conflict resuming was unlikely for now.
The two countries had previously severed ties in 1998, when a two-year war between the two nations started over their disputed border.

Eritrea fought alongside Ethiopia in a war that erupted in November 2020 against regional forces from Ethiopia’s Tigray region, but relations soured once again after Asmara was excluded from the peace talks that ended that conflict two years later, and because some of its troops remain in Tigray.

“Ethiopian Airlines regrets to inform its valued customers travelling to/from Asmara that it has suspended its flights to Asmara effective Sept.3 … due to very difficult operating conditions it has encountered in Eritrea that are beyond its control,” Ethiopian Airlines said in a statement late on Monday.
The airline said it would try to rebook affected passengers on other airlines at no additional cost or offer refunds, but did not give more details on the conditions it was referring to
Eritrea Information Minister Yemane Gebremeskel did not immediately respond to a request for comment.
Ethiopian Airlines is ranked the largest in Africa by revenue and profit by the global industry body International Air Transport Association.
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Rwandan Teens Showcase Tech Skills at Inaugural High School Hackathon https://tradeque.co/2024/08/22/rwandan-teens-showcase-tech-skills-at-inaugural-high-school-hackathon/ Thu, 22 Aug 2024 15:31:55 +0000 https://tradeque.co/?p=379 Read More]]> Rwandan youth showcased their tech talent during Kigali’s first high school hackathon on August 17 at Africa Leadership University.

Themed “Kigali Hacks the Future”, it was a 12-hour marathon of creativity and coding, featuring 63 students divided into 12 teams showcasing innovative projects, and promoting collaboration within the tech community.

The student-led hackathon focused on promoting community engagement, improving tech exposure for local high school students, and providing a space to engage with industry experts.

Attended by high school students, mentors, and various tech experts, as well as representatives from the Ministry of ICT and Innovation and other senior full-stack developers.

Bruno Blaise Mudacumura, a student at Lycée de Kigali who was one of the organisers, explained that high school students in tech needed a platform like a hackathon that fosters interaction and idea sharing among themselves and their mentors.

“This is the first time we’re hosting such an event for high school students, and we want to address the neglect many students face by creating an opportunity for them to showcase their skills,” he said.

Mudacumura also added this was an opportunity for them to showcase the expertise of high school students, and to provide a chance for participants to interact with the country’s top experts in tech.

During the hackathon, students worked on different projects in their respective groups, tackling various challenges from health solutions to virtual reality.

Elisa Giramata, one of the students, expressed how lucky she is to have an opportunity to participate, adding that more effort is needed so that many students can have a chance to be part of the next one.

While presenting their project, only three groups were honoured for their innovative solutions.

Don Durkheim, leader of the first-place team, expressed his excitement and gratitude for winning the hackathon, adding that the 12 hours spent were a thrilling journey but worthy.

“This is a huge milestone for me and my team; we learned and collaborated, and this experience has shown me that age is not a barrier in tech; it’s about having the right mindset and passion for solving problems,” Durkheim said.

Nkaka Manzi Fabrice, a senior full-stack software developer, underlined the event’s impact on the youth, noting that this kind of exposure doesn’t only provide them with the skills they need, but also inspires them to continue pursuing tech careers.

“It’s impressive to see young people so engaged with technology to this extent. I believe that with this enthusiasm and innovations displayed here, Rwanda’s future in technology is promising,” Nkaka added.

Victor Muvunyi, Senior Technologist at the Ministry of ICT and Innovation, praised the student’s creativity and technical skills, highlighting that their ideas were aligned with Rwanda’s vision for technological advancement.

“The solutions presented were exceptional, and it’s clear that these young innovators are in tune with the country’s goals and are poised to drive future technological growth,” Muvunyi noted.

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Uganda Expands Oil Exploration to Two New Regions https://tradeque.co/2024/08/21/uganda-expands-oil-exploration-to-two-new-regions/ https://tradeque.co/2024/08/21/uganda-expands-oil-exploration-to-two-new-regions/#respond Wed, 21 Aug 2024 15:09:27 +0000 https://tradeque.co/?p=374 Read More]]> Uganda is embarking on oil exploration in two new regions that could significantly boost the country’s proven crude reserves, which currently stand at 6.5 billion barrels, Energy Minister Ruth Nankabirwa announced on Wednesday.

The discovery of commercial quantities of crude oil in the Albertine Graben basin, located in the west of Uganda near the border with the Democratic Republic of Congo, was made nearly 20 years ago. However, production from this basin is not expected to commence until next year.

Nankabirwa revealed that government geologists are now investigating the oil potential in two new areas: the Moroto-Kadam Basin in the northeast and the Kyoga Basin in the north. Preliminary studies in these regions show promise.

“The ministry is conducting initial exploration studies in the Moroto-Kadam Basin and the Kyoga Basin to evaluate their oil and gas potential,” Nankabirwa said. “Early results indicate that the Moroto-Kadam Basin may have significant commercial oil and gas potential.”

Uganda has five identified basins with suspected hydrocarbon potential, but only the Albertine basin has been extensively explored so far. Within the Albertine basin, the Tilenga and Kingfisher fields are predominantly owned by TotalEnergies (56.7% stake), with China’s CNOOC and the Uganda National Oil Company (UNOC) holding the remainder.

Commercial production has faced delays due to various challenges, including disputes with oil companies over field development and taxation, as well as a lack of infrastructure and funding. Currently, only 72 of the 457 planned wells in the Tilenga and Kingfisher fields have been drilled.

The government is also awaiting a decision next month from Chinese financiers, including EXIM Bank and SINOSURE, regarding funding for the East African Crude Oil Pipeline (EACOP). This 1,445-kilometer pipeline will facilitate the export of Ugandan crude oil through a port on Tanzania’s Indian Ocean coast.

Additionally, oil companies have proposed a liquefied petroleum gas (LPG) facility, for which the government plans to issue a license soon.

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Ghana Cocoa Regulator Won’t Seek Syndicated Loan for 2024/25 Season, CEO Announces https://tradeque.co/2024/08/21/ghana-cocoa-regulator-wont-seek-syndicated-loan-for-2024-25-season-ceo-announces/ https://tradeque.co/2024/08/21/ghana-cocoa-regulator-wont-seek-syndicated-loan-for-2024-25-season-ceo-announces/#respond Wed, 21 Aug 2024 11:22:13 +0000 https://tradeque.co/?p=371 Read More]]> Ghana’s cocoa regulator, Cocobod, will not secure a syndicated loan for the 2024/25 cocoa season, a first in over 30 years, announced Chief Executive Joseph Boahen Aidoo on Tuesday. The new season will commence on September 1, earlier than usual, with a revised target of 650,000 tonnes, down from the earlier forecast of 810,000 tonnes due to inadequate rainfall.

Aidoo confirmed that Cocobod will finance the season locally, stating, “We are not taking funds from cocoa traders. The money will come locally. We are going to be self-financing.” This shift aims to save the regulator $150 million in interest costs previously paid on syndicated loans, which last year carried a record 8% interest rate.

Since the 1992/93 season, Ghana has relied on annual syndicated loans for cocoa bean purchases. However, due to challenges including harsh weather from El Nino, rampant smuggling, and swollen shoot disease, the country faced one of its poorest harvests in a decade during the 2023/2024 season.

The new season’s early start is a response to increased smuggling to neighboring countries and aims to counteract the lower-than-expected output. Despite the reduction in target, Ghanaian cocoa farmers are hopeful for a recovery in the 2024/25 season due to improved weather conditions and rehabilitated farms. Aidoo noted that, if necessary, a combination of self-financing and domestic funding will be utilized.

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Sibanye Completes $101 Million Gold Prepayment Deal and Refinances Credit Facility https://tradeque.co/2024/08/21/sibanye-completes-101-million-gold-prepayment-deal-and-refinances-credit-facility/ https://tradeque.co/2024/08/21/sibanye-completes-101-million-gold-prepayment-deal-and-refinances-credit-facility/#respond Wed, 21 Aug 2024 11:05:37 +0000 https://tradeque.co/?p=367 Read More]]> South Africa’s Sibanye Stillwater has finalized a 1.8 billion rand ($101 million) gold prepayment agreement to bolster its finances amid declining platinum group metal (PGM) prices. The diversified mining company announced the deal on Wednesday, aimed at repaying loans and strengthening its balance sheet.

The company had previously sought to raise over $500 million through prepayment deals to address the impact of the PGM price slump, which significantly affected its earnings. Metals prepayment agreements involve selling future production for an upfront cash payment, providing immediate liquidity.

Sibanye Stillwater’s profits fell by $2 billion last year, driven by lower metal prices and a $2.6 billion write-down on the value of its U.S. palladium mines, a French nickel operation, and a South African gold mine. CEO Neal Froneman described the prepayment deal as a “proactive, strategic financing alternative” to enhance the company’s liquidity and balance sheet.

Under the deal, Sibanye will deliver 1,497 kg of gold in equal monthly installments from October 2024 to November 2026 in exchange for the prepaid funds, which will be used to repay existing loans.

In addition, Sibanye has refinanced and increased its 5.5 billion rand revolving credit facility with South African lenders. The original facility, set to mature in November 2024, has been replaced with a 6 billion rand facility that will now mature in August 2027, with an option to extend by an additional two years.

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Ghana Kicks Off $12 Billion Petroleum Hub Mega-Project https://tradeque.co/2024/08/20/ghana-kicks-off-12-billion-petroleum-hub-mega-project/ https://tradeque.co/2024/08/20/ghana-kicks-off-12-billion-petroleum-hub-mega-project/#respond Tue, 20 Aug 2024 18:01:55 +0000 https://tradeque.co/?p=360 Read More]]> Ghanaian President Nana Akufo-Addo has officially inaugurated the construction of a massive 300,000 barrel-per-day oil refinery, a key part of the government’s plan to establish the country as West Africa’s petroleum hub. The $12 billion project, which will also feature petrochemical plants, is set to transform the region’s oil industry, though it has faced significant criticism.

The refinery will be built in Jomoro, a southwestern city, and will be funded by a consortium including Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co., as announced on state-owned Ghana Television (GTV).

Since discovering oil in 2010, Ghana’s production has reached approximately 132,000 barrels per day of crude oil and 325 million standard cubic feet per day of natural gas. West Africa’s current oil consumption stands at about 800,000 barrels per day, with nearly 90% of this being imported. The new petroleum hub aims to meet the region’s refining needs by 2036, as outlined in a 2018 agreement.

Despite the ambitious goals, the project has sparked controversy. Bright Simons, vice president of Accra-based think tank IMANI Africa, has criticized the consortium, alleging it lacks a solid business plan and is merely speculating on land acquisition.

Local opposition has also emerged, with some residents of the proposed 20,000-acre site protesting and calling for the project’s footprint to be reduced to 5,000 acres. Oliver Barker-Vormawor, a senior partner at the law firm representing affected farmers, argues that the government’s approach disregards valid concerns about the project’s social and environmental impacts, including the displacement of farmers and issues of land rights.

The government has largely dismissed these concerns, highlighting support from other community members who back the development.

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South African Rand Dips as Inflation Data Looms https://tradeque.co/2024/08/20/south-african-rand-dips-as-inflation-data-looms/ https://tradeque.co/2024/08/20/south-african-rand-dips-as-inflation-data-looms/#respond Tue, 20 Aug 2024 17:42:28 +0000 https://tradeque.co/?p=355 Read More]]> The South African rand weakened on Tuesday, trading at 17.8625 against the dollar, down 0.95% from its previous close. The decline comes as markets await key inflation data and signals on interest-rate directions from both South Africa and the U.S. this week.

Investors are keenly eyeing Wednesday’s release of South Africa’s July inflation figures for insights into the future monetary policy of Africa’s most industrialized economy. Economists surveyed by Reuters predict that the South African Reserve Bank will reduce interest rates for the first time in over two years on September 19.

Data released earlier on Tuesday indicated a 0.4% month-on-month drop in South Africa’s leading indicator for June, which monitors vehicle sales, business confidence, and money supply.

Globally, attention will also be on the U.S. Federal Reserve’s minutes and Chair Jerome Powell’s speech at the Jackson Hole symposium this week, as markets look for clues on potential rate cuts.

As a risk-sensitive currency, the rand is influenced by both global economic trends, such as U.S. monetary policy, and domestic economic indicators. On the stock market, South Africa’s Top-40 index showed little movement, while the benchmark 2030 government bond experienced a slight increase in yield to 9.285%.

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Senegal Forms Commission to Overhaul Oil and Gas Contracts https://tradeque.co/2024/08/20/senegal-forms-commission-to-overhaul-oil-and-gas-contracts/ https://tradeque.co/2024/08/20/senegal-forms-commission-to-overhaul-oil-and-gas-contracts/#respond Tue, 20 Aug 2024 13:10:38 +0000 https://tradeque.co/?p=363 Read More]]> Senegal has established a commission of legal, tax, and energy experts to review and potentially renegotiate its oil and gas contracts, Prime Minister Ousmane Sonko announced on national television Monday.

Following his victory in March, President Bassirou Diomaye Faye, who ousted the ruling coalition candidate, ordered a comprehensive audit of the oil, gas, and mining sectors. He pledged to revisit and amend agreements with foreign operators if necessary to better serve national interests.

Details of the audit and any subsequent renegotiation plans have not yet been disclosed. Sonko emphasized the government’s commitment to reassessing these agreements to ensure they align with the country’s interests. The commission will be well-resourced and may engage international experts if needed, although the timeline for the review remains unspecified.

This initiative comes on the heels of Senegal’s debut as an oil producer. In June, Australia’s Woodside Energy announced that its Sangomar oil and gas field had begun production. Additionally, gas production is expected to commence by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP.

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Kampala’s Boda-Bodas: A Lifeline in a Chaotic City https://tradeque.co/2024/08/20/kampalas-boda-bodas-a-lifeline-in-a-chaotic-city/ https://tradeque.co/2024/08/20/kampalas-boda-bodas-a-lifeline-in-a-chaotic-city/#respond Tue, 20 Aug 2024 09:45:19 +0000 https://tradeque.co/?p=342 Read More]]> In the scorching morning heat of Kampala, young men on motorcycles spring into action at the sight of a potential passenger, competing fiercely for business. For many in Uganda’s capital, this scene is a daily struggle for survival, highlighting both the economic desperation and the chaotic nature of the city’s transport system.

Motorcycle taxis, known locally as boda-bodas, have surged in number across East Africa, but nowhere more dramatically than in Kampala. With an estimated 350,000 boda-bodas operating in a city of 3 million, these vehicles fill a crucial transport gap in the absence of a mass transit system and amid high unemployment.

Boda-boda drivers, who come from various parts of Uganda, often have no other job prospects. “We just do this because we have nothing else,” says Zubairi Idi Nyakuni, a driver who, despite holding advanced degrees, struggles with job scarcity.

The boda-boda sector is largely unregulated, and attempts to control it have faced resistance from drivers and frustration from city authorities. The influx of young, unemployed men seeking income has made it difficult for the government to enforce regulations without provoking unrest.

Charles M. Mpagi of Tugende, a company that finances boda-boda purchases, notes the lack of alternative opportunities for Uganda’s youth, who make up about 76% of the population. Unemployment has risen from 9% in 2019 to 12% in 2021, with youth unemployment even higher.

President Yoweri Museveni has historically supported boda-boda drivers as political allies, leveraging their visibility and influence. The term “boda-boda” originated from the 1970s when drivers transported smugglers across borders.

Today, boda-bodas are essential for daily tasks, from school runs to medical emergencies. However, they are also linked to crime and accidents. The number of fatal motorcycle accidents in Uganda rose from 621 in 2014 to 1,404 in 2021.

Despite ongoing efforts to regulate the sector, enforcement is challenging due to the sheer number of boda-bodas and their drivers’ non-compliance with traffic laws. Efforts to establish official stands and improve road safety have had limited success.

Recent policy changes, including a reduction in the licensing fee from nearly $100 to about $35, aim to make it easier to join the industry. With new motorcycles costing around $1,500, many drivers acquire them on credit or through bulk purchase schemes. The high cost and pressure to maintain their bikes create financial strain, often leaving drivers like Innocent Awita struggling to make ends meet.

Awita, who dropped out of school in 2008, faces daily pressure to pay for his bike and cover operational costs. “Sometimes I work for days without earning enough, but if I get something, it can save my life,” he says.

In Kampala, boda-bodas are both a lifeline and a symbol of the city’s complex challenges, embodying the intersection of economic necessity and urban disorder.

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