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Anglo American considers spin-off as Botswana keen on De Beers’ stake increase

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President Mokgweetsi Masisi of Botswana told JCK News that the country may increase its ownership stake in the world’s largest diamond miner, De Beers, following the announcement by parent firm Anglo American that it intended to spin off or sell the company.

De Beers is 15% owned by the government, and 70% of the company’s yearly supply of raw diamonds comes from Botswana.

To stave off an acquisition by larger rival BHP Group, Anglo revealed a radical evaluation of its operations that included selling or divesting the diamond business to concentrate on copper, iron ore, and a fertilizer project in the UK.

Masisi stated that, should it occur, Anglo’s sale of De Beers would be “the best thing” to JCK in Las Vegas. According to Masisi, “if it’s attractive to,” the government may increase its stake in De Beers. This was stated by the online diamond news station. The government would protect its interests in diamond mining, the president said in a May interview with CNBC Africa.

An IPO for the diamond industry is one of the strategies Anglo may take into consideration, according to Reuters, which quoted sources on May 14.

Like other luxury goods, diamond prices have been hammered by a slump in global demand. De Beers has been limiting supply and offering flexibility to contracted customers. In February, Anglo announced a $1.6 billion impairment charge, on De Beers. Anglo acquired De Beers in 2011, buying the Oppenheimer family’s 40% stake for $5.1 billion.

Masisi told JCK News Botswana’s ideal partner in De Beers would be a long-term investor. The government will try to keep the “bad guys out” and wants investors whose vision is aligned with the government’s.

“One of the characteristics of a bad owner is someone who has impatient capital,” Masisi said. “This industry requires somebody who is in it for the long-haul, because it has its ups and downs.”

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Fitch upgrades Egypt’s credit rating to ‘B’

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Fitch, a credit rating agency has upgraded Egypt’s rating from “B-” to “B” citing tighter monetary circumstances and the country’s improved financial standing thanks to a number of foreign investments and assistance.

“Egypt’s external finances have been bolstered… FX buffers have recovered, and we have somewhat greater confidence that the more flexible exchange rate policy will prove more durable than in the past,” Fitch said, as it also assigned Egypt a stable outlook.

As it attempts to recover from a protracted economic crisis that has resulted in record inflation, a growing debt load, and significant currency devaluations over the last two years, the North African country has been looking for significant investments.

In order to stabilise its economy, Egypt obtained a $8 billion loan package from the International Monetary Fund (IMF) this year, along with a $35 billion real estate investment package from Abu Dhabi and about $1 billion from the EU.

The IMF insisted that the loan amount was suitable, despite Egyptian President Abdel Fattah al-Sisi’s suggestion last month that his government should reevaluate the agreement in light of the country’s growing regional concerns.

Fitch also cautioned on Friday that Egypt faces a significant risk from a further escalation of the regional conflict.

Yemen’s Houthi attacks on Red Sea ships have caused trade to be rerouted from the Suez Canal, which has negatively impacted tourism and Egypt’s revenue stream. There are also dangers associated with the larger Middle East conflict.

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Nigerian to launch $5bn Africa Energy Bank in January

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To improve energy access and development throughout Africa, the Nigerian government has announced that the much-awaited $5 billion Africa Energy Bank will open for business on January 28, 2025.

Nicholas Ella, the Permanent Secretary of the Federal Ministry of Petroleum Resources and Executive Board Member representing Nigeria at the 19th Executive Board meeting of the African Petroleum Producers Organisation in Yaounde, Cameroon, revealed this.

Representatives from 13 member nations attended the summit.

The permanent secretary reaffirmed Nigeria’s dedication to the principles of APPO and the prompt establishment of the energy bank in Abuja in a statement released by the Ministry of Petroleum Resources on Friday.

Recall that Nigeria defeated Ghana, Algeria, South Africa, and the Benin Republic to win the right to host the Africa Energy Bank Headquarters in July 2024?

The AEB seeks to close funding shortfalls in the oil and gas sector on the continent.

Ella said, “I am pleased to address the Executive Board meeting on this very important subject matter – the take-off of the Africa Energy Bank Headquarters in Abuja, Nigeria.

“As you are no doubt aware, the headquarters building (of the Africa Energy Bank) was inspected by the Technical Team on May 24, 2024, and renovation works for its completion are ongoing.

“Nigeria is fully committed to delivering the building with furnishing to the bank in good time. We have the full support and cooperation of Mr President and our National Assembly to actualise this project in Nigeria.”

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