Markets: Latest News
Kevin Mwanza, 8:52 am
African development Bank (AfDB) approved a $10 million equity funding to boost Information and Communication Technology (ICT)-driven production and growth in six sub-Saharan Africa countries. The Technology and Innovation in Developing Economies (TIDE) Fund 1 will invest in companies that use new technology to provide affordable services in the energy, agribusiness, financial, education and healthcare sectors
Dana Sanchez, 2:53 pm
Nigeria’s top shrimp producer, Atlantic Shrimpers has unveiled a 400-acre shrimp farm that it says will be the largest in sub-Saharan Africa, producing shrimp for Nigeria and the export market. A French-owned shrimp farm in Madagascar that is about 10 times bigger may already have claimed that title. Owned by a French company, the farm in Northwest Madagascar is one of two spread over 4,000 acres of natural clay soil, producing more than 5,000 tons of shrimp per year. The Madagascar farm is also the first in Africa to get international certification that promotes responsible fish farming.
Kevin Mwanza, 7:40 am
Nigeria’s economy sunk deeper into recession after its Gross Domestic Product (GDP) contracted for the third straight quarter of this year by 2.24 percent, according to data released by the National Bureau of Statistics (NBS) on Monday. The dip follows a 2.06 percent decrease in the year’s second quarter as inflation hit an 11-year high of 18.3 percent last month, driven by an acute dollar shortage that has drastically hit the West African nation’s capacity to import.
Kevin Mwanza, 4:06 am
Exxon Mobil Corp., the world’s biggest oil producer by market value, is negotiating with the government of Chad over a record $74 billion fine, which is about five times the country’s Gross Domestic Product (GDP). The country’s High Court slapped the U.S. firm with the fine last month, after a complaint by the Ministry of Finance that the consortium failed to pay taxes and had an outstanding $819 million in overdue royalties.
Dana Sanchez, 12:01 am
As reality TV shows go, “Shark Tank,” may be unusual for its focus on businesses seeking investment rather than on the drama or personal lives of cast members. There are now “Shark Tank” versions all over the world. An investor on the recently launched South African version is making waves by offering to invest in a company using bitcoin — possibly a “Shark Tank” world first. South African entrepreneur Vinny Lingham is a vocal bitcoin supporter. He’s known for a string of companies including Gyft, Yola and blockchain startup Civic.
Peter Pedroncelli, 2:35 am AFKI Original
The best-performing businesses in the Johannesburg Stock Exchange have provided up to fifteen-fold returns for smart investors over the last five years. A hypothetical initial $1,000 investment placed in the best performing company on the South African benchmark five years ago would have grown to $15,000 by now. Here are the 12 best-performing businesses on the Johannesburg Stock Exchange in the past five years.
Kurt Davis Jr., 10:10 am AFKI Original
The risk in some sub-Saharan Africa deals can push mezzanine interest rates up between 20-30%. Yet mezzanine finance is a vital opportunity for the SSA financial market. Avoiding equity dilution is a top concern for entrepreneurs and family business owners. Mezzanine finance is a way to do that. If the company is willing to assume more debt to avoid equity dilution, then mezzanine finance is vital. Mezzanine finance is also a vital part of greenfield or brownfield infrastructure, especially power projects.
Dana Sanchez, 10:35 am
Naspers owes its fortune to one great investment — a 34% stake in China’s top internet service, Tencent. The stake is worth more than Naspers itself. Investors aren’t impressed with Naspers’ operations in some markets. The mega firm is aggressively selling some assets, buying others and expanding online classifieds in new markets including the U.S., where it hopes to topple Craigslist.
Kevin Mwanza, 6:10 am
Kenya, one of Africa’s leading economies, is enjoying an investor boom amid the economic crisis that has hit South Africa and Nigeria occasioned by a persistent commodity prices slump. The leading economy in East Africa grew by 5.7 percent last year and it is projected to expand at an average of six percent up to 2018. The stability of the Kenyan Shilling has been a major attraction for investors.
Dana Sanchez, 3:36 pm
A hedge fund with Carlyle Group LP, the world’s second-largest private equity firm, has lost $400 million it invested in 2015 in a Moroccan oil refinery deal, according to a securities filing. Saudi billionaire Mohammed al-Amoudi owns 67.26% of Morocco’s Samir refinery. The deal highlights the risks U.S. investors face in emerging markets that have unfamiliar investor-protection laws. Still, despite the risks, investors continue to find the lure of higher growth in emerging markets attractive.
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