Week of February 6
Citi Expects Clients to Double Investment Into NigeriaNigeria experienced investment inflows of nearly $1 billion in 2011, and Citibank expects this number to nearly double to $2 billion in 2012. Despite worries that investments may decline due to violence in areas like Boko Haram, analysts expect economic momentum to continue.
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MasterCard Opens East African Regional Headquarters in KenyaIn recognition of East Africa’s rapid economic growth and vast potential, Mastercard has opened its East African Regional Headquaters in Kenya. Mastercard’s Nairobi office will provide advanced electronic payment services to the East African region.
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Intra-Africa Trade May Double on Fewer Barriers, World Bank SaysAfrica could double intra-regional trade by easing non-tariff barriers. In the next decade Africa intends to increase intra-African trade to 25-30 percent from its current level of 12 percent, while also implementing a Continental Free Trade Agreement by 2017.
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Africa – A Resilient Frontier Amid Euro TurmoilAfrica has proved a rare bright spot as global financial markets have been roiled by the Euro crisis. According to Dealogic, debt issuance by African countries hit a record $12.4 billion in 2011, up 17 percent on the previous year while global debt issuance, by contrast, fell 6 percent. Read More »
Source: Financial Times
S Mobility Plans to Buy Mobile-Software Companies in AfricaS Mobility, an Indian mobile-handset maker, seeks to buy at least one mobile software company in Africa. Revenue from value-added mobile services in Africa is expected to grow from $11.8 billion in 2011 to $29.8 billion in 2016 driven by the substantial demand for mobile-phone and mobile-software services. Read More »
Private Equity Funds Seek Safe Haven in Property MarketGlobal private equity funds like Actis, Renaissance Partners, Emerging Africa Capital, InReturn Capital and locally listed investment firm Centum, continue to invest in the real estate sector in Kenya, attracted by the double digit returns (25 percent target) driven by unmet demand and portfolio diversification benefits. Read More »
Source: Business Daily (Kenya)
Kenya's Fourth International Airport UnveiledMwai Kabaki, the President of Kenya, officially opened the nation’s fourth international airport. Due to the need to transport people and goods effectively, the President has recognized the air transport and aviation sector as an integral industry in the world economy. Read More »
Source: Africa Review (Kenya)
MTN - Dimming growth prospects. After The Reward, The RiskInvestors are concerned that the recent economic and political turmoil in Nigeria and global threats to the price of oil will hurt MTN's profitability. Goldman Sachs dropped the share from its pan-Europe buy list and cut its rating to neutral. Read More »
Source: Financial Mail (South Africa)
African M&A drops 53%M&A activity in Sub-Saharan Africa has dropped 53% to $21.3 billion in 2011. South Africa had 57% of overall M&A activity in region, closing $12.2 billion worth of deals. Read More »
Source: Private Equity Africa (UK)
African Leaders Endorse Major Continental Infrastructure ProgrammeAfrican Heads of State approved of the Programme for Infrastructure Development in Africa, a long-term, multi-billion dollar project to spur the physical integration of Africa, increase intra-African trade, and boost African global competitiveness. The initiative will run through 2040. Read More »
Source: African Development Bank Group