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African projects worth US$92 billion awaiting Chinese investors

African projects worth US$92 billion awaiting Chinese investors

Beijing – The President of the African Development Bank, Akinwumi Adesina, has urged Chinese business leaders to attend the Africa Investment Forum scheduled to take place in Johannesburg, South Africa, from 7 to 9 November.

Adesina made the call while addressing delegates at the 6th Conference of Chinese and African Entrepreneurs, which took place on the sidelines of the 2018 Beijing Summit, attended by leaders from 53 African countries and China.

“I am sure you all know Africa is the place to be. African economies are growing well and the GDP growth rate is projected to average 4.1% this year,” he said.

Akinwumi had lively exchanges with high-level officials and business leaders from China, led by Vice-Premier Liu He, Governor Yi Gang of the People’s Bank of China, and the President of China Development Bank, Zheng Zhijie.

Responding to questions by China Economic News on how China could be unique to Africa, Adesina said, “China doesn’t just promise, China delivers.”

In another interview, with China Daily, he noted: “There’s a perfect alignment between the Belt and Road Initiative and the ‘High 5s of the African Development Bank Group.” The bank is already discussing with China Development Bank about formulating large-scale projects, which can fit in the frameworks of both.”

The development bank president also described the relationship between China and Africa as a mutually reinforcing partnership, noting that there are 10,000 Chinese companies and 1.3 million Chinese people throughout Africa.

Adesina cited the significant trade imbalance as a challenge to be tackled. While nearly 90% of China’s exports to African countries are value-added products such as machinery and equipment, 75% of Africa’s exports are raw materials. He therefore called on Chinese companies to invest, and not just contract or provide loans to Africa’s public sector.

Highlighting energy and the agriculture and food sectors as opening vast opportunities and potential to China and the world, Adesina expressed hopes for a strong representation by Chinese businesses at the upcoming African Investment Forum in South Africa.

“This is not a talk-show, it is all about transactions. US$92 billion portfolios are already set on this platform,” Adesina said.

The Africa Investment Forum will convene project sponsors, borrowers, lenders and investors, necessary for accelerating investments in Africa. The three-day event will unite global pension funds, sovereign wealth funds, and other financial sector investors.

The forum will also bring together a network of financial institutions with instruments to de-risk selected investment opportunities.

DurinG his keynote speech at the opening ceremony of the 2018 China-Africa Cooperation Forum, President Xi Jinping referred to the Africa Investment Forum as a concrete step for “building a shared future.”

Jinping pledged to extend a US$60 billion financing package and US$10 billion investment in Africa over the next three years.

China-Africa trade amounted to US$174 billion in 2017, a huge increase from just over US$10 billion in 2000. Chinese foreign direct investments in Africa have risen from US$10 billion in 2010 to over US$60 billion in 2017.


 

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.