Finance

LAGOS(Capital Markets in Africa) – Anhui Jianghuai Automobile Group Corp., Ltd., JAC Motors, China’s automobile and commercial vehicle manufacturer, has announced the results of its expansion program in Africa in 2018, declaring that it has established a presence in 28 countries across the continent. Spurred on by China’s Belt and Road initiative (BRI), the country’s program to fund and build infrastructure projects around the world along the ancient Silk Road trade routes, JAC Motors has…

JOHANNESBURG (Capital Markets in Africa) The rand has become the whipping boy for investors concerned about South Africa’s struggling electricity utility and its impact on the country’s economy. After posting the best start to a year on record on January, the currency is heading for its biggest February loss since Bloomberg started compiling the data in 1989. Eskom’s bonds, meanwhile, are behaving as if there’s no problem, even as traders fret about the government’s ability to rescue the state-owned company…

JOHANNESBURG (Capital Markets in Africa) – EOH Holdings Ltd., the South African IT company reeling after an anonymous complaint prompted Microsoft Corp. to abruptly cancel a contract, has created an app that will make that process easier for future whistleblowers. Expose-It, which was made available for download on Monday, enables those with sensitive information about their company or organization to pass it on to relevant authorities without fear of being identified. The app is designed to…

LONDON (Capital Markets in Africa) – Rules put in place to save U.K. taxpayers from bailing out major lenders again are having an unintended side effect. They’re encouraging HSBC Holdings Plc to wade into a market it long neglected: British mortgages. Trading updates in recent weeks from Nationwide Building Society, Royal Bank of Scotland Group Plc and Metro Bank Plc said competition to lend to British home buyers was intensifying, even with Brexit looming. HSBC has been wooing first-time home buyers in…

LONDON (Capital Markets in Africa) – Honda Motor Co. is planning to close its factory in the U.K., dealing a new blow to a British auto industry already struggling with a Brexit-related slowdown and potential tariffs, Sky News reported, citing an unnamed source close to the company. The Japanese manufacturer could announce the decision to close the plant in Swindon by 2022 as early as Tuesday. The factory, Honda’s only one in the EU, employs around…

JOHANNESBURG (Capital Markets in Africa) – A South African company embroiled in allegations that it paid millions of rand a month in bribes to secure government contracts is facing collapse, becoming the biggest casualty since President Cyril Ramaphosa started a probe into state corruption. African Global Operations, the services company formerly known as Bosasa, will apply for either a voluntary liquidation or business rescue after a local bank informed the firm it will close its accounts by the…

NAIROBI (Capital Markets in Africa) – Kenya said it’s almost reached an agreement with the International Monetary Fund on a new standby loan facility after a meeting this week in the East Africa nation’s capital, Nairobi. A similar facility, where the IMF availed $1.5 billion for Kenya to draw from in the event of balance of payment shocks, but didn’t, lapsed in September. The insurance-type facility will serve to reassure buyers of Kenyan debt such as…