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AfDB, Japan Agree to Promote Private Investments in Africa

InvestAdvocate — Wed, 23 Mar 2016 16:52:50 +0000

Credit: AfDB

March 22, 2016/AfDB

A 40-member delegation of Japanese investors paid a courtesy call on the African Development Bank Group in Abidjan on Monday, March 21, 2016, and met with AfDB President Akinwumi Adesina. The meeting focused on further strengthening AfDB-Japan cooperation in the public sector as well as promotion of Japanese business and private investments in Africa.

The AfDB and Japan agreed to give an impetus to cooperation and building a transformative partnership that would stimulate large-scale private sector investments in Africa and provide opportunities for constructing quality infrastructure in the region, with energy as a key priority for the continent’s development.

Japan’s State Minister for Foreign Affairs, Seiji Kihara, led the delegation. He described the meeting as a wonderful opportunity and expressed his country’s interest to help boost Africa’s economy through private sector investment. “The Government of Japan will continue to promote investments by its private sector to Africa, which we believe will contribute to job creation, human development, industrialization and value addition of supply chain. It even brings a good work ethic for workers,” Kihara said.

President Adesina recognized the relevance of AfDB’s partnership with the country and said he was glad to meet with a wide representation of Japanese investors. “Africa is the place to invest. The opportunities are limitless. We need to work together for co-development,” he said, underscoring Japan’s prominent role.

Africa needs at least US $50 billion to address its energy needs over the next five years. Touching on how to mobilize such large-scale resources, the President identified three areas for government initiative: increasing the share of energy investment as a percentage of GDP, improving tax collection and reducing illicit capital flows.

The President also highlighted the Bank’s deep appreciation for Japan’s continuous support to the African Development Fund (ADF), the African Development Bank (AfDB) as well as the co-financing and direct funding provided by the Japan International Cooperation Agency (JICA) and the Government of Japan under the Enhanced Private Sector Assistance (EPSA) Initiative, expected to reach a cumulative US $3 billion this year since the launch of EPSA over ten years ago at the Gleneagles G8 Summit.

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Shell shareholders approve $50 billion BG takeover

InvestAdvocate — Wed, 27 Jan 2016 19:47:49 +0000

January 26. 2016/Reuters

THE HAGUE/ By Karolin Schaps

Royal Dutch Shell (RDSa.L) shareholders approved its $50 billion takeover of BG Group (BG.L) on Wednesday, clearing the last main hurdle to creating the biggest liquefied natural gas (LNG) trader in the world.

BG shareholders are also expected to approve one of the biggest deals in the energy sector in the past decade at a meeting on Thursday, a vote that would allow the two oil and gas companies to merge on Feb. 15.

Few investors have openly challenged the deal’s strategic benefits for Shell. But with oil languishing near $30 a barrel and only a slow recovery forecast, some had questioned the viability of a deal that would increase Shell’s debt burden.

Shares in BG were up 1.3 percent at 1325 GMT (8:25 a.m. ET), while Shell’s B shares traded 0.5 percent lower, both outperforming a 0.9 percent fall in the European oil and gas index .SXEP and valuing Shell’s cash and share offer at about $50 billion.

“Our immediate focus is on the successful completion of the transaction and we now await the results of tomorrow’s BG shareholder vote,” Shell Chief Executive Ben van Beurden said.

In the vote at the meeting in The Hague, 83 percent of Shell shareholders voted in favor of the deal with 17 percent against. More than 40 percent of Shell’s shareholders also own about half of BG’s stock, according to Reuters data.

If the deal is approved by all shareholders Shell will become the world’s most powerful LNG trader and gain access to valuable oil resources off Brazil and in Australia.

Some shareholders at Wednesday’s meeting had expressed concern about Shell overpaying for BG, based on the near halving of oil prices since the deal was announced on April 8 last year.

Shell Chief Financial Officer Simon Henry said on Wednesday that every $10 decline in the price of a barrel of oil shaves $4 billion off the combined Shell-BG cashflow.

The companies expect to save about $3.5 billion in overlapping costs following their merger.

Other shareholders said they were concerned about Shell betting more heavily on fossil fuels through the BG deal, rather than investing in renewable energy.

“We have voted against this deal because we think there is a much better way to spend billions: in renewable energy,” Mark van Baal, founder of Follow This, a group of Shell shareholders supporting green energy with about 5 million euros of shares.

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Investments in power sector hits $50bn

InvestAdvocate — Wed, 05 Feb 2014 07:21:51 +0000

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, has said that the privatisation of Nigeria’s power sector has unlocked the investment opportunities in the sector, with pipeline investments estimated at $50bn currently.

Aganga said for the first time in Nigeria’s 53-year history, the country successfully privatised the electric power industry “and is bringing in capital, technology and operational excellence into the sector.”

He spoke at the 5th Standard Bank West Africa Investors’ Forum in Lagos on Tuesday.

The minister said, “This event themed ‘Nigeria: Time to Deliver,’ is a call to action, a statement of great expectations, an acknowledgement of the great potential across the length and breadth of our country.

For many years, power has been the bane of businesses in Nigeria, and was left unaddressed.

“This administration has, however, tackled power supply head-on. For the first time in Nigeria’s 53-year history, the country successfully privatised the electric power industry, and is bringing in capital, technology and operational excellence into the sector.

“As a result, 11 distribution companies and four generation companies have been privatised for over $3bn; other generating plants in the National Integrated Power Projects Programme will also be privatised soon. These electricity assets were physically handed over to private owners on November 1, 2013.

“But privatisation is just the beginning in Nigeria’s power sector, as we now have a pipeline of approximately $50bn of investments lined up to go into the Nigerian power industry in the next few years.”

Aganga noted that, given the abundant investment opportunities in Nigeria, the country would remain one of the leading high growth and high returns countries globally.

He said in order to achieve sustainable inclusive economic growth and diversification, the Federal Government had already embarked on far-reaching sector-specific reforms to address the challenges inhibiting competitiveness of local businesses across all sectors of the Nigerian economy.

He said, “The administration of President Goodluck Jonathan is taking Nigeria in a new direction that will unlock the economy driven by sectoral policies in order to facilitate inclusive economic growth and diversification through competitiveness.

Source: Punch

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