MTN Signs Non-Binding Agreement to Invest in Iranian Net
South Africa-based MTN Group continues to set its sights on participating in Iran’s fast growing telecoms industry, with this preliminary move to place nearl $40M in Iranian Net for a 49.5% stake in the company. MTN has growing stakes in Iran, with its minority ownership of Irancell, though MTN had slowed its expansion efforts in Iran due to US sanctions preventing the company from repatriating around $1B in revenue from its stake in Iran’s telecoms space. Now that those sanctions have lifted, we can expect to see more such deals in Iran.
BP and Kosmos Discover Large Gas Well Off Coast of Senegal
BP must feel good about committing $1B to exploring for gas off the coasts of Senegal and Mauritania. The two companies found a well estimated to contain around 15 trillion cubic square feet of gas. Needless to say, the two companies will keep looking for more gas.
Deloitte Outlines Nigeria’s Tax Policy for Entertainers and Athletes
I’m sure non-resident Nigerians who go back to Nigeria to perform were not happy to hear about this case Deloitte makes for Nigeria to figure out its taxation policy for non-resident Nigerians in order to take advantage of another potential revenue stream for the country.
Oil Discovered Off Senegal’s Coast – link
The wave of West African countries discovering oil continues with Cairn Energy, a Scottish Oil Company, striking oil about 100km off the coast of Senegal. The company is not yet sure about the size of the discovery – a first for Senegal. When Ghana discovered oil in 2010, many looked to the country to debunk the resource curse theory. While Ghana has avoided the security issues parts of Nigeria have dealt with for the past 50 years, it has faced serious fiscal challenges since the oil discovery. Perhaps Senegal will be the leading country to show that African countries can manage their resources effectively. I’ll be watching how Senegal markets its oil in the coming years, in the wake of Nigeria not exporting oil to the U.S. for the month of July – the first time that has happened since rcords were kept in 1973.
Abraaj Takes Majority Stake in Libstar – link
The Abraaj Group, one of the more prominent private equity firms focused on developing markets, announced a majority stake it took in Liberty Star Consumer Holdings (Libstar), a company previously owned by Métier, another private equity firm. The company is a leader in the private-label and own-branded fast moving consumer goods spaces supplying customers like KFC, Pick n Pay, and Tiger Brands. The company’s latest annual revenue as reported on Metier’s website was about $405M.
Equatorial Guinea’s Second Vice President Agrees to Relinquish $30M in Assets – link
The United States Governent and Equatorial Guinea’s Second Vice President Teodoro Nguema Obiang Mangue reached an agreement for Second Vice President Mangue to relinquish $30M in assets in wake of charges that he used his influence to embezzle funds from the Equatoguinean people. As part of the agreement, $20M will go to a charitable organization in the benefit of the Equatoguinean people, and another $10M will go to the U.S. Government, which will also use the money for the benefit of the country’s people. This agreement came in the lead up to Equatorial Guinea’s Independence Day, which was this past Sunday. The U.S. Government originally sought $70M from Second Vice President Nguema.
“I don’t feel pressure from being the President of the Toronto Raptors. I feel pressure from Africa.” The energy that entered the room when Masai Ujiri said that at yesterday’s NYU Africa Economic Forum is why I am still awake.
Masai went on to say that his work would be a waste if he didn’t have any impact in Africa to show for being NBA Executive of the Year or potentially winning an NBA championship. Boom!
Masai’s speech was the highlight of the NYU Africa Economic Forum, though three ideas from other speakers really got my brain going and I may dive deeper on them later this week.
Makhtar Diop, World Bank VP for Africa, explained how pursuing a credit rating for Senegal while he was Minister of Finance provided investors data they could understand, subsequently increasing their level of interest in placing capital in the country.
Ken Ofori Attah, retired CEO of Databank, stressed the importance of Diasporans marketing Africa well.
Eric Guichard, CEO of Gravitas Capital and Homestrings, highlighted the opportunity for the structuring of projects to satiate the perceived lack of capital and projects from the perspectives of companies and investors, respectively.
Kudos to the NYU Africa Economic Forum team for keeping me up way past my bedtime!
What else? What ideas struck you at the NYU Africa Economic Forum?