Battle: Dar es Salaam vs Nairobi

Beijing finds itself cornered by Africa as they cancel China-led projects​


21. September 2021

China is increasingly finding itself being cornered by African countries on investment-related matters with several of them cancelling their contracts​


Topics
China | Beijing | Africa
ANI Last Updated at September 21, 2021 16:02 IST


China is increasingly finding itself being cornered by African countries on investment-related matters with several of them cancelling their contracts with Chinese companies, according to a media report.

The Singapore Post in an article on Monday said some of the countries had cancelled contracts as the "shoddy" work of the Chinese companies had become a source of tension for the ruling dispensations in several nations across the African continent.

After Ghana cancelled the contract of the Beijing Everyway Traffic and Lighting Tech company, which was to develop an intelligent traffic management system for the country, President of the Democratic Republic of Congo (DRC) Felix Tshisekedi called for a review of mining contracts previously signed with China in 2008, the publication said.

The DRC President said he wants to get fairer deals for his country. Unhappy with China's exploitative tendency, he said, "Those with whom his country signed contracts are getting richer while DRC people remain poor."

In 2008, then Congo President Joseph Kabila, who was in power from 2001 to 2019, signed deals with Chinese state-backed firms Sinohydro Corp and China Railway Group. Under the agreement, these Chinese companies were to build roads, hospitals and bridges in the Democratic Republic of Congo in exchange for a 68 per cent stake in the country's Sicomines venture, The Singapore Post reported.

According to the publication, lack of transparency was the issue that shrouded the China-led projects in Congo.

Ghana government cancelled the project because they found Everyway Traffic and Lightening Tech's work not up to any satisfaction and cancelled the project outright.

Last year in July, a Kenyan High Court ordered the cancellation of a USD 3.2 billion contract between Kenya and China for the construction of the Standard Gauge Railway. The court termed the whole project "illegal", stating the state-run Kenya railways failed to comply with the country's law in the procurement of the Standard Gauge Railway.

According to the John Hopkins University School of Advanced International Studies' China-Africa Research Initiative, between 2000 to 2019, China signed 1,141 loan commitments worth USD 153 billion with the African government and their state-owned enterprises, The Singapore Post reported.

The publication said that such whopping loan amounts have become unbearable for poor African countries. Moreover, on account of the Covid-19 pandemic and its impact on the economy, several African countries have found it tough to service loans they have taken from China. Hence, with limited choice to manage debt burdens, African countries have preferred to suspend projects which are controversial or cut sorry figures on the accountability front.

Meanwhile, most of the Chinese projects getting scrapped in Africa are part of Beijing's ambitious Belt and Road Initiative and this is what worries Chinese authorities, The Singapore Post reported.

Initiated in 2013, the BRI is Xi Jinping's grand plan to connect Asia with Africa and Europe via land and maritime trade networks to create new routes for China.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

 
Sio wawili ni mmoja huyo mwenye ids nyingi zote zinamwaga pumba, ni mkabila sana na alienyimwa ufahamu, chuki zake kwa mtu ambae ni marehemu zinaonesha namna marehemu ana nguvu sababu anamuogopa mtu asiekuepo japo lake lipo!
 
mention them! Na usitaje miradi binafsi! Kumbuka majengo ya wizara, ring road na Msalato mpaka JPM anafariki fedha ilikuwa haijapatikana! kwa hiyo ni miradi ya Samia Suluhu!

Ring roads zilikwisha pitishwa na African Development Bank na Msalato pia.



Mama hamna kitu hapo hata ufanyaje. I understand why you support her.
 

Vodacom eyes more stake in Safaricom Addis unit​




By VICTOR JUMA
More by this Author

​

Summary​

  • Vodacom Group has signed a deal that could see it buy an additional 10.9 percent stake in Safaricom Telecommunications Ethiopia.
  • The deal, if completed, will raise Vodacom’s interest in the newly formed telco to 17.1 percent.
  • The South Africa-based multinational currently owns a 6.2 percent stake in the Ethiopian firm through the Netherlands-registered investment vehicle Vodafamily Ethiopia.


Companies​

Tuesday September 21 2021

Safaricom CEO Peter Ndegwa. PHOTO | POOL

Vodacom Group has signed a deal that could see it buy an additional 10.9 percent stake in Safaricom Telecommunications Ethiopia from UK’s sovereign wealth fund CDC Group at a cost of $1.74 billion (Sh191.2 billion) in the coming years.

The deal, if completed, will raise Vodacom’s interest in the newly formed telco to 17.1 percent.

The South Africa-based multinational currently owns a 6.2 percent stake in the Ethiopian firm through the Netherlands-registered investment vehicle Vodafamily Ethiopia Holding Company.

“As part of the transaction agreements, Vodacom has granted a put option on the shares held by the CDC Group in the holding company to facilitate CDC Group’s potential exit in the investment,” Vodacom said in a trading update.

“CDC Group can only put the shares at fair market value (the total exposure of the put option is capped at $1,740 million (Sh191.2 billion), representing 10 percent of Vodacom’s current market capitalisation) from year 8 to year 10 from the year of commencement of commercial operations of the Ethiopia operating company.”

A put option is a contract that gives the buyer the right, but not the obligation, to sell a specified number of shares or other security at a predetermined price within a specific period.

In this case, CDC got a guarantee that there will be a buyer for its stake in the future.

If the Ethiopia venture proves successful and there are suitors willing to pay larger sums, the UK sovereign wealth fund can sell to them and leave Vodacom to keep the premiums paid in the contract as profit.

If there are no other buyers, CDC will have the right to sell the stake to the South African multinational based on the fair market value and which will be capped at the set amount.

The deal signals Vodacom’s confidence that the Ethiopian operation will be successful, indicating that the telco could be worth as much as Sh1.7 trillion in a decade.

If Vodacom buys the CDC stake, it will have raised its exposure in Ethiopia by a large margin. The multinational also holds a 35 percent stake in Kenya’s Safaricom Plc –the majority shareholder in the Ethiopian business with a 55.7 percent equity.

The other shareholder in the venture is Japan’s conglomerate Sumitomo Corporation with a 27.2 percent stake. Vodafone Plc, which has stakes in Safaricom and Vodacom, has a nominal interest in the Ethiopian business.

The consortium members on September 10 signed agreements to fund the new venture.

"Vodacom’s commitment to fund Ethiopia Opco is limited to its pro rata beneficial shareholding of 6.2 percent, which is not expected to be material," the multinational said.

"Safaricom, as the lead member of the consortium, intends to provide additional disclosure on the funding of the Ethiopia operating company in the coming months. Vodacom will also provide strategic operational support for the Ethiopia operating company."

The consortium won an operating licence and paid $850 million (Sh93.6 billion) to the Ethiopian government after beating a rival bid of $600 million (Sh66.1 billion) from a group led by South Africa-based MTN.

The Safaricom consortium also pledged to invest a total of $8 billion (Sh881.6 billion) over 10 years, including the cost of building telecoms infrastructure.

The big-ticket investment is expected to see the consortium borrow from institutional investors, including development finance firms.

The parties see the deal as presenting a huge growth opportunity in a market of 110 million people and which has previously relied exclusively on the State-owned Ethio Telecom.

Ethiopia recently announced that Safaricom would be allowed to offer mobile money services after Ethio Telecom, making the licence more valuable.

"The licence unlocks a unique opportunity for the Consortium to build out world-class services in Africa’s second largest country by population, providing a compelling long-term growth vector for Vodacom and Safaricom," Vodacom said.

"Furthermore, the investment in Ethiopia enhances Vodacom and Safaricom’s geographic diversification."




MY TAKE
Yaani hata nusu mwaka haujafika Safaricom inauza stake? It seems Safaricom couldn't raise funds to secure her stake!
 
Wakenya kama mnaakili you need to arise dhidi ya mnavoibiwa

Tangu mmefungua huu uzi kuhusu likoni Bridge(2017), Tanzania imejenga Madaraja 3 makubwa ukanda huu wa Africa mashariki (Salender, Kingongo na Pangani).

Kenya mnaishi kwa ajili ya leo, Tanzania inaishi kwa ajili ya Leo, Kesho na milele.

Wakati Kenya mnajivunia Nairobi ambayo soon inakuwa sawa na kamtaa ka Dar es salaam, Tanzania inajenga Mji Mpya Dodoma.

Kwa sasa Kuna ujenzi wa Majengo ya wizara (Ghorofa za kunzia ngazi 18 na kuendelea), maana yake mwaka 2022 mwishoni Dodoma itakuwa inaanza Rasmi kushindana na Nairobi...
 
Miradi yote hiyo ilishatafutiwa fedha yote na mikataba ilishasainiwa na serikali siku nyingi, ilibaki tu utekelezaji sababu pesa zilishapatikana!

Kuomba na kupata ni tofauti na huwezi jua labda asingepewa na mababeru? Reasonable figure ya investment ya GoT Dodoma kipindi cha JPM haiwezi zidi $500 mln! chukua Dodoma Bus terminal, Ndugai market, Uhur Hospital, Dodoma water supply project, Dodoma sub station na Dodoma's Government city Mtumba roads and some Agency offices and Government residential units !
 
Kuomba na kupata ni tofauti na huwezi jua labda asingepewa na mababeru? Reasonable figure ya investment ya GoT Dodoma kipindi cha JPM haiwezi zidi $500 mln!

SGR peke yake ya Dodoma ni $ 2B
 
SGR si kwa ajili ya Dodoma pekee ni mradi wa nchi nzima! Huwezi kudai ni mradi wa Dodoma city!
 
SGR si kwa ajili ya Dodoma pekee ni mradi wa nchi nzima! Huwezi kudai ni mradi wa Dodoma city!
Ni moja kati ya miradi ya Dodoma kama Dodoma, haimaanishi kama imeanzia mkoa tofauti na kuishia mkoa mwingine haina impact yoyote kwenye mkoa wa Dodoma

Pesa za AfDB zilizotolewa tayari kipindi cha Magufuli kwenye Airport na ring road ni almost $ 500 million
 

Magufuli isn't a member of their temple. Just leave it at that.
 
Wakenya mking'ang'ania neno rebase rebase rebase mnachosha kama kuna kipindi mlikua mna neno CBD
 
Mlikuwa wapi kumlinda.na wale waganga wa Nigeria,DR Congo,gamboshi nk? [emoji1][emoji1][emoji1] Dhalimu alishughulikiwa vilivyo na uviko 19
Mkuu bora huende ahera ukabishane na marehemu . Sio ethical kukinzana na mtu aliyefariki . Yake yashapita . Tuendelee alipoishia kwa kurekebisha mapungufu na kuiga mazuri aliyifanya . Usingengua na mapungufu ungekua kama bill gates kila mtu ana mapungufu yake
 
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