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Investors rush to Nigeria as borrowing costs fall but inflation rises.
A fall in borrowing costs in the country has improved its risk impression for foreign investors
, leading to a fall in the country’s borrowing costs.
Yields on Nigeria’s dollar bonds maturing in 2047 fell from an all-time high of 13.2 per cent on March 19 to 9.1 per cent last week.
With investors appetite growing, the Consumer Price Index (CPI) which measures inflation, showed a further increase to 12.34 per cent (year-on-year)
in April compared to 12.26 per cent in the preceding month, according to the National Bureau of Statistics (NBS).
Investor confidence in Egypt boosted after renewed engagement in IMF.
Yields on its 10- year dollar bond rose to 12 percent in mid- March but settled at 8-8.5 percent in early May. The IMF also provided a $2.8 billion facility under it’s Rapid Financing Instrument (RFI) with a Standby Agreement (SBA) of another $4 billion over a year.
Kenya experiences lowest growth in Mobile deals since 2007
Payment deals settled through mobile phones and tablets in the first three months of the year rose at the slowest pace in the history
of mobile money deals in Kenya.
The year-on-year growth in mobile money deals during the first quarter of 2020 is the lowest since M-Pesa, co-owned and operated by Safaricom, was rolled out in March 2007.
- Morocco received a $127 Million loan from Arab Monetary Fund.The loan from the Arab Monetary Fund is to provide financial resources to meet the country’s needs amid the global COVID-19 crisis.
Nigerian Federal Government launches sale of Bond which will improve Road Infrastructure.The sale of N150bn seven-year Sukuk bond offer meant for the development of road infrastructure in different parts of the country.
- Prices of Kenyan sovereign bonds have fallen significantly since May 7 when rating agency Moody’s downgraded the country credit rating to negative from stable.
M & A :
Stanlib Fahari I-Reit has been acquired by ICEA Lion. This includes Stanlib’s asset management operation of the property fund.
Ghana’s First National Bank acquires majority stake in GHL Bank from emerging markets private equity specialist Actis , owned through the Abraaj Africa Fund III.
Private Equity Deals :
- Tunisia Agri-business SICAM receives a $56 million investment from Development Partners International (DPI), a leading Pan-African private equity firm through its third fund ADP III, as they make their first and largest private equity investment in Tunisia.
Nigeria Agri-business Tomato Jos raises EUR 3.9 million investment to grow its production of high-quality tomato paste for the African market from Goodwell Investments, through its West Africa partner Alitheia Capital, with participation from Acumen Capital Partners and VestedWorld.
Pee Tanzania Limited (PPTL) a regional leader in the production of grain storage bags receives a long-term debt investment from AgDevCo .
Venture Capital Deals :
- South Africa’s Peach Payments raises funding from UW Ventures, in partnership with Allan Gray, to accelerate product development and extend its market reach across Africa.
- Kenya’s Agri startup Apollo Agriculture raises $6M in a Series A funding led by Anthemis this week.