Finance

LAGOS (Capital Markets in Africa) — Tundra Fonder AB’s Sustainable Frontier Fund has cut its holdings of Nigerian stocks by more than half within a year in another sign that foreign investors have lost patience with the government’s handling of the economy. The Stockholm-based money manager’s fund had a 7% weighting in Lagos-traded bank stocks as of December, down from 15% in January 2020, a monthly statement shows. After being among the top three countries…

LAGOS (Capital Markets in Africa) — Viruses mutate all the time, including the novel coronavirus that’s caused the global Covid-19 pandemic. Most of the changes have no apparent effect. But recent variants that have emerged in the U.K., South Africa, and Brazil are causing particular concern. Studies suggest they are more contagious, and some evidence points to the U.K. strain being more deadly. An increase in infections has led to a surge in hospitalizations and…

NAIROBI (Capital Markets in Africa) — Yields on Kenyan Eurobonds rose, widening the risk premium over U.S. Treasuries, after the Paris Club of creditors granted the East African country’s request for a delay in some interest payments, raising concern of potentially larger debt challenges. The Paris Club of creditors agreed to delay $300 million of debt-service payments by Kenya, the nation’s Treasury said. Kenya, however, won’t seek debt suspension from multilateral and commercial creditors, as it wants…

LUANDA (Capital Markets in Africa) — The International Monetary Fund approved the disbursement of $488 million to Angola and reiterated its confidence that Africa’s second-biggest oil producer will rein in public debt to sustainable levels. The disbursement approved by the executive board comes four months after the Washington-based lender increased the size of the loan by almost a quarter to $4.5 billion to help Angola weather the fallout of the coronavirus pandemic. The three-year Extended Fund Facility,…

DAR ES SALAAM (Capital Markets in Africa) — Tanzania asked Beijing for debt relief and signed a new multibillion-dollar railway deal during Chinese Foreign Minister Wang Yi’s Africa tour. President John Magufuli asked for the cancellation of old debts totaling $167.7 million, according to the East African nation’s presidency. Earlier Friday, Tanzania signed a $1.32 billion rail-development contract with the China Civil Engineering Construction Corp. and China Railway Construction Corp. Several African nations are struggling to fund the…

LAGOS (Capital Markets in Africa) Globeleq, a leading independent power generation company in Africa, has confirmed it will take a 74% majority equity stake in an existing Nigerian power business called CPGNL Limited (CPGNL), which will be rebranded as Globeleq Power Solutions Nigeria Limited. The current owner of the business, the Clean Energy Group, will retain the remaining 26% shares. CPGNL has a portfolio of assets that serve commercial and industrial customers mostly in the…

JOHANNESBURG (Capital Markets in Africa) — Pfizer Inc. and BioNTech SE offered to supply South Africa with their Covid-19 vaccine at a discounted $10 a dose, yet the president’s office still described the cost as prohibitive, according to a person familiar with the talks. The price was worked out according to South Africa’s status as a middle-income nation and is about half of what the drugmakers are charging in the U.S., the person said, asking not…