Atta Africa Financial Update

Airtel and Facebook to bring basic Internet services to Nigerians

Bharti Airtel Africa, a leading telecommunications service provider with operations in 17 countries across Africa, has announced that it will launch a new service named Free Basics in Nigeria - a joint service to be provided with Facebook.

Any Nigerians with an Airtel mobile connection will be able to access all the services that are available through Free Basics without paying extra for data charges or rental. Free Basics provides basic mobile websites and services for free to people around the world and demonstrating the value the internet can provide.

Free Basics will launch in Nigeria with more than 85 free services dedicated to health, education, jobs, and finance.

To date, Facebook estimates that its connectivity efforts, which include Free Basics, have brought more than 25 million people online who may not have been otherwise.

Fact: Most of the world's fastest runners come from a single tribe in Kenya, Africa, called the "Kalenjins"

Investec to manage US$670 million Emerging Africa Infrastructure Fund

  • Investec Asset Management has been appointed to manage a public-private partnership anchored by the governments of the United Kingdom, The Netherlands, Sweden and Switzerland
  • The EAIF is an initiative of the donor-financed Private Infrastructure Development Group and was developed to mobilise capital into private sector infrastructure projects across sub-Saharan Africa
  • Established in 2002, the Fund has committed over US$1.2 billion to 63 projects in 19 countries

Kenya may not use IMF loan as reserves hit one-year high

  • Kenya in March secured a new loan from the IMF totalling Sh153 billion (US$1.5 billion) to be utilised within two years in case of external shocks
  • According to the latest CBK weekly bulletin the reserves have touched US$7.7 million which is equivalent to 5.01 months of import cover, a high last seen in December 2014
  • According to the IMF, Kenyan authorities don’t intend to draw the precautionary facility “unless exogenous shocks lead to an actual balance of payments need”. The country similarly did not draw from the previous three-year facility

Kenya regional oil re-export up 34%

  • Kenya’s petroleum re-exports rose 33.9 per cent last year to Sh52.9 billion (US$525m) on the back of huge regional demand compared to 2014
  • The Economic Survey 2016 shows Kenya has witnessed a consistent and significant rise in re-exports of petroleum products over the last five years with 2015 hitting 752,000 tonnes

South Africa now the third-largest economy on the continent

  • South Africa has been known as the continent’s second-largest economy since Nigeria rebased its gross domestic product (GDP) data in early 2014
  • However, the International Monetary Fund’s (IMF) World Economic Outlook (WEO) released in mid-April provided more sobering GDP statistics for South Africa
  • Not only did the multilateral organisation suggest that the South African economy would grow by a mere 0.6% this year, but also that the country is now only the third-largest economy on the continent behind Nigeria and new silver medallist Egypt

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.