Finance

MAPUTO (Capital Markets in Africa) — Mozambique published its proposed model for a sovereign wealth fund as it prepares to reap as much as $96 billion — more than six times the size of its current gross domestic product — from liquefied natural gas projects that companies including Total SE are building. The developments, which are the biggest private investments yet in Africa, could make Mozambique the continent’s second-biggest producer of the fuel. The central…

LAGOS (Capital Markets in Africa) — Nigerian lawmakers have approved a plan to borrow as much as 4.28 trillion naira ($11 billion) from both domestic and foreign debt markets to support its expenditure in 2021. The National Assembly gave the go-ahead on Wednesday after debating the government’s medium-term expenditure plan covering the next three years. President Muhammadu Buhari is scheduled to present the 2021 budget proposals before lawmakers on Thursday. The spending plan provides for an estimated…

LAGOS (Capital Markets in Africa) — Goldman Sachs Group Inc. boosted the size of a new credit fund to $14 billion in what is shaping up to be one of the largest debut investment vehicles ever raised. The bank, which set out with a target of $5 billion to $10 billion, is now expecting to finish fundraising with a $14 billion war chest to pour into companies in need of fresh liquidity. A Goldman representative…

JOHANNESBURG (Capital Markets in Africa) — South Africa should act to preserve its insolvent national airline and seek to partner the carrier with Ethiopian Airlines Group, according to a study commissioned for the ruling-party lawmakers. The assessment, seen by Bloomberg, was prepared by African Aviation Services Ltd. and dated Oct. 4. It was presented to a group of African National Congress lawmakers on Monday, according to an ANC official who asked not to be identified because the…

LAGOS (Capital Markets in Africa) — Nigeria is counting on gas-powered vehicles to help it reduce reliance on gasoline and improve its climate credentials while easing the pangs of ending decades of an expensive fuel-subsidy regime. Energy prices have shot up sharply after the government ended subsidies and the country’s labor unions are threatening a general strike on Sept. 28. After a 60% loss of revenues due to the plunge in oil prices, President Muhammadu…

JOHANNESBURG (Capital Markets in Africa) — South Africa’s government will provide initial funding to cover certain restructuring costs for the country’s insolvent airline, said Minister of Public Enterprises Pravin Gordhan. South African Airways needs about 10.5 billion rand ($650 million) to restart. Funding is needed for workers’ severance packages, to pay creditors and cover operational costs, the minister said in response to questions from Bloomberg News. “The money issue from the government side will be…

LAGOS (Capital Markets in Africa) Chinese companies are unlikely to be challenged in the near term as they dominate Africa’s construction market with a 62% market share, even as the pandemic slows activity. The continent’s infrastructure growth potential could eventually attract European funds, we believe, as new common strategies are developed to provide partial funding and execute civil engineering projects.  China’s Belt and Road Initiatives in Africa to Remain in Play Despite shifting financial resources…