Connect with us

VenturesNow

Nigeria’s Fidelity Bank to raise 127.1bn in compliance with new capital requirement

Published

on

In the bid to comply with a new minimum capital requirement for local lenders set by the central bank in March, Nigeria’s Fidelity Bank announced on Thursday that it would raise 127.1 billion naira ($88 million) via a rights issue and a public share sale.

Local lenders have begun submitting plans to fulfil the central bank’s new minimum capital requirements, which would fortify the financial system and promote economic growth, the central bank said on Tuesday.

The new law stipulates that commercial banks having international licenses need to have a minimum capital of 500 billion naira, or $345 million. To reach the new benchmark, more than 20 Nigerian institutions will need to raise additional capital in the next two years.

According to Fidelity, the capital raising plan was approved by its shareholders in August of last year, and the share sale is scheduled to begin on June 20 and terminate in July.

It stated that the offer’s proceeds would be used to fund product distribution channels, company and regional expansion, and internet infrastructure.

In recent months, Guaranty Trust Holding Plc, Access Holding, and FBN Holdings—three of Nigeria’s leading lenders—announced their intentions to raise capital.

According to the central bank, lenders require additional buffers to withstand shocks, sustain the economy, and spur growth—especially in light of the two significant devaluations of the local naira that have occurred since June of last year.

The economy has been beset by high inflation and slow development for the past ten years. In an attempt to stimulate growth, the government has raised interest rates, increased prices, and made the crisis caused by rising living expenses worse.

VenturesNow

Zambia to establish unit for mineral trading, investing

Published

on

To increase its revenue from its natural resources, Zambia will establish a new company for investment and mineral trading, the cabinet announced on Wednesday following approval.

According to the statement, the government of Zambia, the second-largest copper producer in Africa, would create a Special Purpose Vehicle (SPV) for trading and investment purposes. Through ZCCM Investment Holdings, the government currently owns many mining assets.

The new entity would help Zambia “move away from the dividend payment model for mineral resources and adopt a production-based sharing mechanism to ensure benefits accrue to the people of Zambia beyond Statutory obligations,” the Cabinet said.

 

It further stated that the new business model will guarantee accurate disclosure of mineral consignments intended for export and internal consumption, permit the government to negotiate mineral prices, and share produced minerals.

10% to 20% of mines, including those controlled by Barrick Gold, Vedanta Resources, and First Quantum Minerals, are owned by ZCCM. It recently retained the remaining 51% of Mopani Copper Mines after selling the remaining portion to a division of United Arab Emirates International Holding Company.

Paul Kabuswe, Zambia’s minister of mines, told Reuters in February that Zambia intended to negotiate bigger stakes in new mining operations to increase revenue and encourage investment in social programs.

The nation aims to produce 3 million metric tons of copper annually within the next ten years as the demand for metal rises in the building and electricity sectors. In 2023, the nation produced 698,000 metric tons of copper, down from 763,000 metric tons the year before.

The production of copper decreased from 763,000 tons the year before to 698,000 tons the following year, according to the Zambia Chamber of Mines.

Continue Reading

VenturesNow

Kenya’s govt authorizes sale of its stakes in 6 publicly traded firms

Published

on

According to President William Ruto’s office, the Kenyan cabinet has accepted a government proposal to sell shares it owns in six listed companies, including the nation’s stock exchange and a cement manufacturer.

The government will sell its holdings in battery manufacturer Eveready East Africa, Nairobi Securities Exchange, HF Group, Stanbic Holdings, Liberty Kenya Holdings, and East African Portland Cement, according to a statement released late on Tuesday by Ruto’s office.

 

The National Social Security Fund owns 27% of East African Portland, while the government owns a direct 25.3% share. The government holds 1.1% of Stanbic Holdings, 0.9% of Liberty Kenya Holdings, 2.41% of HF Group, 3.36% of Nairobi Securities Exchange, and 17.2% of Eveready.

This action is in line with government intentions to sell off stakes in further state-owned businesses. After passing a bill in October to provide guidelines for the process, Ruto said in November that the government intended to privatize 35 state-owned businesses.

 

But in December of last year, the opposition party filed a lawsuit to oppose the plan, arguing that some of the enterprises being sold had vital national interest and should only be sold with public approval. As a result, the plan encountered difficulties.

Continue Reading

EDITOR’S PICK

VenturesNow1 hour ago

Zambia to establish unit for mineral trading, investing

To increase its revenue from its natural resources, Zambia will establish a new company for investment and mineral trading, the...

Musings From Abroad2 hours ago

UN joins Sudan’s warring sides with Israel, Hamas in global list of child rights violators

The United Nations Secretary-General, Antonio Guterres, on Wednesday, added the Palestinian militant groups Hamas and Islamic Jihad, the Israeli armed...

Sports3 hours ago

Namibia bowled out by Australia to reach T20 World Cup Super 8

Namibia’s hopes of reaching the T20 World Cup Super 8 was on Tuesday night truncated by Australia as they were...

Tech3 hours ago

Mastercard Foundation expands EdTech Fellowship to Egypt

The Mastercard Foundation has extended its EdTech Fellowship Egypt following earlier programmes in South Africa, Kenya and Nigeria. The EdTech...

Culture3 hours ago

SA officials launch probe into accident that killed musician Shebeshxt’s daughter

South African authorities have launched an investigation into the tragic accident that claimed the life of the nine-year-old daughter of...

VenturesNow6 hours ago

Kenya’s govt authorizes sale of its stakes in 6 publicly traded firms

According to President William Ruto’s office, the Kenyan cabinet has accepted a government proposal to sell shares it owns in...

Politics6 hours ago

Economic reform won’t stop despite hardship— Nigeria’s Bola Tinubu

Despite mounting difficulties that have stoked popular unrest, Nigeria’s President Bola Tinubu declared on Wednesday that economic reforms would go...

Metro10 hours ago

Expect new national minimum wage soon, Tinubu assures Nigerian workers

The lingering new National minimum wage saga between the Nigerian government and organised labour may have been put to rest...

VenturesNow10 hours ago

IMF, Kenya seal staff-level agreement, recommends fiscal consolidation

The International Monetary Fund (IMF) and Kenya struck a staff-level agreement on Tuesday, according to the multilateral body, opening the...

Politics11 hours ago

Amnesty Int’l accuses Nigerian Army of unlawful detention of female terror escapees

Rights organization, Amnesty International, has accused the Nigerian army of unlawfully holding young women and children who had escaped from...

Trending