Connect with us

VenturesNow

Egypt to build $1bn flat steel integrated industrial complex

Published

on

The Egyptian government has announced plans to establish an integrated industrial compound to produce flat steel.

The investments according to a statement on Wednesday by the cabinet are worth $1 billion and will complement industrial reforms in the mining and drilling sector through which President El Sisi intends to reform the economy.

The complex would target international exports while also serving the local market with a flat steel manufacturing capacity of 1.8 million metric tonnes annually.

The project will be built in collaboration with an international firm, according to the cabinet, which did not specify which company. It has received approval from the General Authority for Suez Canal Economic Zone.

Already, Egypt is home to some of the continent’s biggest steel companies. Some major steel producers in Egypt are Al Ezz Steel Rebars S.A., which owns and operates the Al Ezz El-Dekheila Steel Co. plant in Alexandria and has the capacity to produce 6 million metric tons per year; Suez Steel Co. (Solb Misr), with the capacity to produce 2 Mt/yr of steel at its plant in Ain Al-Sokhna; Beshay Steel Group, which has the capacity to produce 3.0 Mt/yr of steel at its plant in Sadat City; and the Egyptian Steel Group, which has the capacity to produce 830,000 t/yr of steel at its plant in Ain Al-Sokhna, among other producers.

Mining and steel production are part of Egypt’s main earning sources. According to reports, GDP contribution from Mining in Egypt increased to 121359.30 EGP Million in the third quarter of 2022 from 103335.20 EGP Million in the second quarter of 2022.

Egypt’s economy is challenged, as its official data agency, CAPMAS on Sunday revealed that the country’s headline inflation, driven by the basket of goods that comprise the consumer price index, rose higher than expected to hit 37.4% in August from 36.5% in July.

VenturesNow

Nigeria’s Dangote Sugar Refinery issues commercial papers worth N42.79 billion at rates of 25%, 23%

Published

on

Nigeria’s Dangote Sugar Refinery has declared the issuance of its N42.79 billion Series 4 and 5 commercial papers, offered at 25% and 23%, respectively, were successfully issued. The company’s N150 billion commercial paper issuance program included issuing the papers.

The 181-day Series 4 and the 265-day Series 5 were issued for a total of N12.93 billion and N29.86 billion, respectively. The notification released by the company states that institutional and individual investors, along with pension and non-pension asset managers, participated in the CP issuance.

Dangote Sugar Refinery has issued N39.39 billion in 266-day Series 1 notes at a 17.08% discount rate as part of its N150 billion commercial paper program. Furthermore, at a 19.84% discount rate, the corporation has issued N6.15 billion in 184-day Series 2 notes.

At a discount rate of 21.30%, the business issued 254-day Series 3 notes for N53.47 billion. Therefore, Dangote Sugar has raised N141.8 billion through its Series 1 to 5 CPs. The letter to the group states that the corporation plans to diversify its funding sources through the issuance of commercial papers. The money raised will go toward meeting finance needs and sustaining short-term operating capital.

According to Dangote Sugar’s Q1 2024 financial reports, interest costs on commercial papers totalled N543.2 million, while interest costs on bank loans came to N21.48 million. This suggests that commercial papers rather than bank loans are the company’s primary source of funding.

These commercial papers’ high discount rates are a reflection of Nigeria’s high-interest monetary environment at the moment. The CBN increased Nigeria’s benchmark interest rate by 750 basis points to 26.25% in 2024, which had an impact on manufacturers’ capacity to finance working capital.

In essence, the CBN’s decision has caused banks to significantly raise their lending rates. For instance, UBA’s loan rates to the manufacturing sector ranged from 28.50% to 32.00% as of May 17, 2024. Due to this increase, businesses are now looking for alternate sources of funding, and debt securities like bonds and commercial papers are one such choice.

However, treasury bills (NT-bills) and OMO bills issued by the CBN are vying with commercial papers for investors’ attention in the market for short-term debt securities. Furthermore, the CBN’s yield rates on NT notes and OMO bills in 2024 have shown to be extremely competitive. For instance, the June 5, 2024, 182-day and 364-day NT bills have respective discount rates of 17.5% and 20.67%.

Companies have been obliged to implement rather high interest rates for these CPs to compete favourably. Series 3, 4, and 5 CPs from Dangote Sugar are available at discounts of 21.30%, 23%, and 25%, respectively. It has also forced other issuers to adopt high interest rates. Series 1 and Series 2 CPs were issued by Coronation Group with respective discount rates of 19.83% and 21.81%.

Continue Reading

VenturesNow

Nigeria’s inflation increases to a record 28-year high in May

Published

on

According to official figures released on Saturday, Nigeria’s annual inflation reached a record 28-year high of 33.95% in May, exacerbating the hardships that have stoked popular ire against President Bola Tinubu’s economic reforms.

Inflation increased for the eighteenth consecutive month, up from 33.69% in the previous month.

Tinubu’s measures, which primarily cut energy and gasoline subsidies and devalued the naira twice in a single year, have increased price pressure.
Labour unions, who asked for a new minimum wage through an industrial strike that was called off after two days, have maintained that the reforms disproportionately affect the poor and have left millions of people facing the biggest cost-of-living crisis in decades.

The National Bureau of Statistics data indicated that in May, food and non-alcoholic beverages remained the main drivers of inflation.

The majority of Nigeria’s inflation was driven up by food prices, which increased to 40.66% from 40.53% in the previous month. Analysts say the major causes of Nigeria’s inflation are rising food prices and a declining value of the naira.

The report read, “In May 2024, the headline inflation rate increased to 33.95% relative to the April 2024 headline inflation rate which was 33.69 per cent. Looking at the movement, the May 2024 headline inflation rate showed an increase of 0.26 per cent compared to the April 2024 headline inflation rate.

“On a year-on-year basis, the headline inflation rate was 11.54 per cent points higher compared to the rate recorded in May 2023, which was 22.41 per cent. This shows that the headline inflation rate (year-on-year basis) increased in May 2024 when compared to the same month in the preceding year (i.e., May 2023).

For the third time this year, the central bank increased interest rates in May in reaction to the ongoing increase in inflation. Rates will remain high for as long as it takes to reduce inflation, according to Governor Olayemi Cardoso.

Continue Reading

EDITOR’S PICK

Metro8 hours ago

‘Stop complaining, you’re not the only ones facing poverty,’ Tinubu tells Nigerians

President Bola Tinubu has told Nigerians to stop complaining as they are not the only ones facing poverty and hardship...

Musings From Abroad20 hours ago

France to withdraw forces from West and Central Africa

According to three sources quoted by AFP, France intends to scale back its military deployment in West and Central Africa...

Politics20 hours ago

5 parties now part of South Africa’s unity government— ANC

South Africa’s ruling party, the African National Congress (ANC), has announced that negotiations with other parties are still underway as...

Behind the News20 hours ago

Behind the News: All the backstories to our major news this week

Over the past week, there have been many important stories from around the African continent, and we have served you...

Video21 hours ago

Video: Nigerian Afrobeats star Adekunle Gold tells sickle cell story

In this interview, Kenyan journalist, Larry Madowo, speaks to Nigerian singer, Adekunle Gold, on living with sickle cell disease and...

VenturesNow21 hours ago

Nigeria’s Dangote Sugar Refinery issues commercial papers worth N42.79 billion at rates of 25%, 23%

Nigeria’s Dangote Sugar Refinery has declared the issuance of its N42.79 billion Series 4 and 5 commercial papers, offered at...

Metro23 hours ago

Zambian Police bar political party leaders from attending church services

The political crisis in Zambia took a new disturbing dimension on Sunday when heavily armed Police Officers stopped Presidents of...

Culture23 hours ago

Rema’s ‘Calm Down’ breaks US record with one billion streams

Nigerian Afrobeats sensation, Divine Ikubor, popularly known as Rema, has broken another music record after his hit song, “Calm Down”,...

Sports23 hours ago

Former Kenyan Olympic champion Wilfred Bungei gives reasons for joining politics

Former Kenyan 800m Olympic champion turned politician, Wilfred Bungei, has explained the reason behind his decision to transit into the...

Tech24 hours ago

Airtel Africa activates subsea cable connecting Kenya, Tanzania, South Africa

Airtel Africa has announced the successful activation of the 2Africa submarine cable system that will connect Kenya, Tanzania, and South...

Trending