Eskom Gets Rescue Option as PIC Proposes Debt-Equity Swap

Eskom Gets Rescue Option as PIC Proposes Debt-Equity Swap

JOHANNESBURG (Capital Markets in Africa) – A proposal by the biggest owner of Eskom Holdings SOC Ltd.’s debt to convert its $6.4 billion holding into equity has become a rescue option as South Africa seeks to restructure the troubled power utility. In return, the Public Investment Corp., which manages about $150 billion and is responsible for the pensions of more than 1 million state workers, wants a say over Eskom’s messy finances, including board representation, said…

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Woodford Investors Can’t Leave Hargreaves, Rival Platform Says

Woodford Investors Can’t Leave Hargreaves, Rival Platform Says

LONDON (Capital Markets in Africa) – Investors in Neil Woodford’s frozen flagship fund have been prevented from moving their accounts from Hargreaves Lansdown Plc to other investment platforms, according to a competing firm. Woodford shocked the financial world last month when he locked the LF Woodford Equity Income Fund after a run of poor performance. About 133,000 clients have invested a total of just over 1 billion pounds ($1.2 billion) in the fund through the Hargreaves Lansdown platform. The Telegraph newspaper reported the news…

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Issues and solutions for African trade finance. Are ECAs and DFIs the answer?

Issues and solutions for African trade finance. Are ECAs and DFIs the answer?

LAGOS (Capital Markets in Africa) – The last few years have proved difficult economically for much of Africa.  This, together with political issues (for example in Zimbabwe, South Africa, and Mozambique) and constraints on access to finance, has resulted across much of the continent in a drop off in inward investment levels. In addition, economic growth has not lived up to hope or expectation. This article looks at some of the issues and how certain…

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The Edge of Reality: The African Continental Free Trade Area

The Edge of Reality: The African Continental Free Trade Area

LAGOS (Capital Markets in Africa) – In March 2018, member countries of the African Union took a significant step to boost regional trade and economic integration by establishing the African Continental Free Trade Area (AfCFTA). As of 29 April 2019, 22 countries have deposited their instruments of ratification of the AfCFTA agreement with the African Union, meeting the threshold for the agreement to come into effect. Accordingly, the AfCFTA came into force on 30 May…

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Prospects for Regional Economic Integration in Africa

Prospects for Regional Economic Integration in Africa

LAGOS (Capital Markets in Africa) – Africa has over the years, especially since the 1960s, established continental and regional integration bodies and frameworks, that have provided auspices for political and economic milestones. For instance, political decolonisation was achieved in 1994 under the Organisation for African Unity, the African Union was put in place in 2002 and a continental peace and security architecture established 2003, eight regional economic communities were formally recognised in 2006, the COMESA-EAC-SADC…

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The Mining Industry’s Generation of Something New

The Mining Industry’s Generation of Something New

LAGOS (Capital Markets in Africa) – A few years after this century’s commodity boom, which was primarily driven by China’s resource-intensive manufacturing and infrastructure sectors, many segments within the global mining industry are facing challenges that have caused severe price declines, increased volatility and lowered utilization levels. To add to this, the current value-chain is being challenged by macroeconomic conditions and increasingly pervasive new technology. As a matter of fact, the digital transformation of mining…

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Fintech Platforms Within a Trade Finance Context

Fintech Platforms Within a Trade Finance Context

LAGOS (Capital Markets in Africa) – Much has been said about the upcoming “fintech disruption”. About 4 years ago, emerging technology companies identified as “fintechs” were mostly finger-pointed as attempting to create the next wave of competition against established financial institutions (FI’s). At that time, most bankers viewed fintechs as new entrants trying to enter the financial services industry using advanced technologies and innovative business models. Fintechs were perceived as attempting to grab market share…

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