The Editorial Team |

AfriSam Is Said to Be Talking to Partner to Secure PPC Deal

JOHANNESBURG (Capital Markets in Africa) – AfriSam Group Pty Ltd. is in negotiations with an equity partner to recapitalize the company and enable South Africa’s second-biggest cement maker to push through a merger with larger rival PPC Ltd., according to two people familiar with the matter. Closely held AfriSam has a letter of intent from an investment company based in the Americas that’s willing to put up new funding, said the people, who asked not to…

Namibia Black-Ownership Plan Risks Copying S. African Errors

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WINDHOEK (Capital Markets in Africa) – A plan by Namibia, among the world’s most economically unequal nations, to better distribute wealth among its citizens may end up the way neighboring South Africa’s has — benefiting an elite minority. The nation is working on a law that will require all businesses to be at least a quarter owned by “racially disadvantaged people.” While only about 6 percent of Namibia’s 2.5 million citizens are white, they own most…

Nigerian Naira Is Overvalued by 20% vs USD Says Bank of America

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LAGOS (Capital Markets in Africa) – “A 20% depreciation in the NAFEX/NGN spot exchange rate is still needed to reach fair value, despite last year’s partial devaluation and the recent moves in key FX windows,” Bank of America analysts Yusuf Rukayat and Gabriele Foa say in a note to clients. They recommend avoiding naira debt, even with 1-year T-bills yielding 22% and FX-hedged trades yielding 12%. “While NGN carry is similar to EGP, we find…

South Africa’s Biggest Gold Miner Halts Dividends as Debt Builds

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JOHANNESBURG (Capital Markets in Africa) – Sibanye Gold Ltd. canceled its dividend after debt ballooned while it swung to a loss, marking a series of firsts for the South African producer that’s been one of the world’s top performers in its four-year history. Sibanye will focus on cutting borrowings after its $2.2 billion purchase of U.S. platinum-group metals producer Stillwater Mining Co. earlier this year, making the payment of a cash dividend “inappropriate,” the Johannesburg-based…

Telkom Says South Africa Mulling Sale of Up to $1 Billion Stake

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JOHANNESBURG (Capital Markets in Africa) – Telkom SA SOC Ltd. said the South African government is considering various options regarding its 39 percent stake in the fixed-line operator as it seeks to raise cash to bail out the country’s unprofitable national airline. The state’s shares in the former telecommunications monopoly are worth about 13 billion rand ($996 million). Lawmakers are in talks with government-owned companies including the Industrial Development Corp. and the Public Investment Corp. to…

Coors-Led Fund Buys Africa’s Largest Sushi-Grade Trout Farm

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JOHANNESBURG (Capital Markets in Africa) – One Thousand & One Voices LLC, a private-equity fund started by the great-grandson of the founder of Coors Brewing Co., said it bought a producer of sushi-quality trout that is the largest such facility in Africa. SanLei’s operations are on the Katse Dam in Lesotho, an enclave surrounded by South Africa, 1K1V, as the fund is known, said in an emailed statement Tuesday. The company didn’t disclose the value of…

Cryptocurrencies Are New Barbarians at the Gate of Central Banks

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LAGOS (Capital Markets in Africa) – When the cryptocurrency Exio Coin starts a round of fundraising on Sept. 7, its founders say the unit will come with a unique distinction: the first to be endorsed by a sovereign nation. The identity of the government backer won’t be revealed until October, and Bloomberg News has no way of verifying the claim of support. According to co-founder Sunny Johnson though, the supporter is one of “the world’s richest countries” on a…

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