VenturesNow

Kenya, Japan companies in $620 million deals for auto assembly and eco-energy

Published

3 months ago

February 8, 2024

Kenya has committed to many agreements with Japanese companies, notably the Toyota Tsusho Corporation, geared towards investments in car assembly and renewable energy worth up to Ksh99 billion ($620.7 million).

Kenyan President, William Ruto, posted on social media that “in Tokyo, Japan, I witnessed the signing of the Framework Agreement for Collaboration between Kenya and Toyota Tsusho Corporation and later toured the Toyota Motamachi Factory.

“The pact entails Ksh15 billion ($94 million) in Meru Wind Farm Energy, Ksh8 billion ($50.2 million) Isiolo Solar Energy, Ksh800 million ($5 million) in Thika Kenya Vehicle Manufacturers (KVM)’s initial investment, Ksh75 billion ($470.22 million) in Menengai Geothermal Plant and Electrified Vehicles promotion.”

President Ruto went on to say that talks, which he claimed were moving forward well, were being held with Toyota about the possibility of opening a car plant in Kenya in order to meet the country’s expanding demand for its goods.

“The manufacturing project would reduce the number of used vehicles we continue to import and create jobs for our skilled manpower. I am glad that Toyota Tsusho Corporation finds the project viable. We undertake to provide sufficient incentives to multinational automotive manufacturers to set up shop in Kenya,” Ruto said.

The Toyota agreement was first inked in October during the G7 Session of Trade Ministers in Osaka, Japan, between the Japanese company and the Kenyan government. The purpose of the agreement was to renovate the local assembly factory, whose production capacity had been restricted by budgetary limitations.

Trade Cabinet Secretary Rebecca Miano confirmed the agreement at the time, however she did not specify what Toyota planned to invest in.

“Noting that the Kenya Vehicle Manufacturers, one of the local automotive assembly facilities in Kenya, is experiencing financial difficulties, it was agreed that Toyota Tsusho, as one of the stakeholders in the industry, step in to save the facility from eminent collapse,” stated Miano last October.

VenturesNow

Nigeria’s Petroleum Regulator begins bidding round for 12 oil blocks

Published

8 hours ago

May 14, 2024

Ifeoluwa Dada

The Nigerian Upstream Petroleum Regulatory Commission has announced the start of the bidding process for 12 oil blocks recently put up for sale. It also marks the beginning of the 2024 Nigeria Petroleum Licensing Round and the continuation of the 2022/2023 mini-bid round.

This was stated in a press release issued by the commission’s CEO, Gbenga Komolafe, on Monday in Abuja. Last month, the commission made the first announcement about the bidding process.

It also waived the signing bonus requirement throughout the bidding process to entice investors to bid on the auctioned oil blocks.

He said, “On behalf of the Federal Government of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission is pleased to announce the commencement of the 2024 Petroleum Licensing Round.”

On the number of blocks for the offer, Komolafe noted, “We have identified 12 blocks that cut across deep offshore, shallow water and onshore terrains to be made available to interested investors.”

According to him, this licensing round represents a key milestone in our commitment to supporting long-term growth and innovation in the energy sector, as well as creating economic prospects for investment to stimulate new exploration and development activities in our petroleum landscape.

He explained that the 2024 Licensing Round will provide an opportunity for domestic and foreign parties to participate in the exploration and development of Nigeria’s hydrocarbon resources. He emphasized that having access to high-quality geological and geophysical data is important to this approach.

Komolafe stated that the National Data Repository of NUPRC, in partnership with multi-client partners, is committed to providing prospective bidders with access to broad and strong datasets to help them make better decisions.

Commenting on the 12-block offer, he stated that it is consistent with the licensing round’s objectives and includes a varied range of exploratory possibilities and discoveries with varying technical and operational preferences.

Komolafe added, “Our goal for this licensing round is to harness innovative exploration techniques and foster partnerships that will enhance our production capabilities and ensure environmental sustainability.

“We anticipate that this initiative will not only expand our operations but also significantly contribute to the global energy supply, aligning with international energy security goals.”

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Ecobank’s $183 million impairment losses highlight hazards in sovereign bonds

Published

8 hours ago

May 14, 2024

Ifeoluwa Dada

Ecobank, a pan-African banking group, has more than doubled its impairment losses on Ghana’s problematic Eurobonds to $183 million, highlighting the extent of risk that African lenders face when investing in state bonds.

The Lome-based lender also stated that it had removed around $39 million in interest income collected on the $13 billion Ghanaian Eurobonds from its 2023 financial statements due to continuing and yet-to-be-completed restructuring discussions with commercial bondholders.

The latest impairment losses represent a 144% increase from $75 million in 2022.

“As of year-end 2023, the total impairment charges on Government of Ghana Eurobonds are estimated at $183 million, a significant rise from $75 million in year-end 2022,” the lender says in its audited financial statement for 2023.

“Additionally, $26 million of modification losses were incurred on the GoG debt net of impairment charge releases due to the final settlement of the old bonds for the new bonds in February under the Domestic Debt Exchange Programme.

Ecobank operates in 35 African nations, including Kenya, Burundi, the Democratic Republic of the Congo, Ethiopia, Ghana, and Cote d’Ivoire. Moody’s Investor Service, a global rating organization, has previously urged banks against excessive lending to governments, warning that their credit profiles risk being lowered alongside those of governments facing liquidity constraints.

Zambia secured an agreement with its creditors in March to restructure $3.5 billion Eurobonds, bringing respite to Lusaka, which has been grappling with a long-running debt problem. As part of the agreement, bondholders agreed to extend payment dates, allowing Lusaka to continue receiving funding from a $1.3 billion International Monetary Fund (IMF) project.