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Kenya has overtaken Nigeria as the country that got the highest private equity deals in Africa last year, according to a new report by DealMakers Africa. 

The report by the South African-based firm which tracks Mergers and acquisitions (M&A) and corporate finance activity across the continent shows that Kenya and Nigeria which are the powerhouses of their regions recorded the most local deals with 95 ($600.3 million) and 82 ($493.1 million) respectively.

Further analysis revealed that both countries recorded a year-on-year decline in private equity deals. In 2022, Africa’s biggest economy attracted 135 deals while Kenya had 123 deals.

“Private equity investment, which for some years now has provided the momentum for M&A activity growth on the continent, was subdued in 2023. This is not surprising, given the higher interest rates and the fact that private equity firms rely on borrowing to part-fund deals,” the report said.

The nalysis shows that, as a percentage of the total deal value, private equity transactions continue to increase and have, for the past few years, constituted 50 percent of the deal flow.

“The value of deal activity recorded was $11.2 billion, a 36 percent decline on the previous year, and 28 percent down on the pre-COVID numbers of 2019. East Africa edged its way back to the top to claim the most activity per region, recording 144 deals, followed by West Africa (136 deals) and North Africa (107 deals),” the report added.

In terms of deal value, Southern Africa which stood out, and more specifically, Zimbabwe, with total deals valued at $5.8 billion, reflecting the size of several mining transactions announced during the year.

While recessionary fears haven’t vanished, they have lessened, supported by the recent forecast by the African Development Bank in its latest Macroeconomic Performance Outlook, which projects that Africa’s GDP will grow 3.8 percent in 2024, and 4.2 percent in 2025, according to authors of the report.

“This feeds into the narrative that consumption will be the driver of investor activity on the continent, with sectors most likely to attract sizeable M&A activity being energy and natural resources, telecommunications and technology, consumer goods and retail, and infrastructure development,” they said.

They added that of the top 10 deals by value for 2023, eight involved targets in the energy or resources sectors, and these were predominantly located in Southern Africa. By , Business Day

The Kenya Airport Authority (KAA) has closed Terminal 1E at the country’s main international airport following a non-injury fire incident linked to an electrical fault.

KAA said response teams contained the fire at the Jomo Kenyatta International Airport (JKIA) and no casualties were reported.

It moved all flight operations on the affected Terminal to Terminal 1A for continuity.

“To mitigate any inconvenience this may cause, all flight arrival operations have been redirected to Terminal 1A until further notice,” KAA stated in an update on Monday morning.

The agency assured passengers using the airport of their safety and convenience as it works to restore operations at Terminal 1E which serves all international arrivals by non-SkyTeam airlines.

“KAA is dedicated to ensuring the safety and security of all passengers, staff, and stakeholders at our facilities and is taking all necessary steps to minimize disruptions and return to normal operations as swiftly as possible.”

The agency did not however give timelines for restoration of operations at Terminal 1E. Capital News

Speaker Nosiviwe Mapisa-Nqakula has taken special leave. Picture: Ayanda Ndamane/Independent Newspapers

Speaker Nosiviwe Mapisa-Nqakula’s fight to prevent law enforcement agencies from arresting her is headed for the Pretoria High Court on Monday.

This was after the National Prosecuting Authority (NPA) confirmed that the urgent application will before court. 

But the NPA said it will oppose the application as it was baseless.

The stand-off began last week following a raid at her house in Johannesburg by the NPA’s Investigating Directorate (ID). .

The speaker has since taken special leave and parliament said this was provided for in the rules of the National Assembly.

Mapisa-Nqakula is accused of taking bribes totalling R2.3 million from a supplier in the department of defence. At the time of the alleged incidents Mapisa-Nqakula was minister of defence before she was deployed to parliament in 2021.

On Sunday the NPA said the urgent application will be heard in the high court on an urgent basis.

“She is seeking an order interdicting NPA’s ID from arresting her. The NPA’s ID will oppose the application as we believe it is baseless and has no merit,” said NPA spokesperson Mthunzi Mhaga. Mapisa-Nqakula has denied allegations of corruption against her. Political parties have called for Mapisa-Nqakula to quit. By Siyabonga Mkhwanazi, IOL

The Extraordinary Organ Troika Summit, Plus SADC Troika, concluded with member states reiterating their regional commitment to the SADC mutual defense pact, wherein an armed attack against one member shall be considered a threat to regional peace and security.

In a communique released by SADC Executive Secretary Elias Magosi, the summit reaffirmed SADC’s dedication to solidarity, self-determination, and regional cooperation. Reports from ZANIS highlighted that Magosi further emphasized the summit’s focus on the peace and security situations in the Democratic Republic of Congo (DRC) and Mozambique.

The summit received updates on the ongoing challenges in the DRC and Mozambique, underscoring regional support towards achieving lasting peace, stability, and security in these nations. Magosi stressed the unwavering commitment to provide both diplomatic and military support to the government and people of the DRC to address the conflict in Eastern DRC.

Additionally, there was a collective pledge to intensify public diplomacy efforts to showcase the successes of SADC Peace Support Missions and counter any negative external narratives that could undermine their effectiveness. The summit expressed support for political and diplomatic processes, including the Luanda Process and the Nairobi Process, aimed at promoting peace and reconciliation in Africa.

Regarding recent correspondence from Rwanda to the United Nations and the African Union Commission regarding support for SAMIDRC, the summit expressed disapproval. However, gratitude was extended to the African Union Commission and the United Nations Security Council for their solidarity and support towards SAMIDRC, which complements ongoing diplomatic and political efforts in the DRC.

President Hakainde Hichilema, Chairperson of the SADC Organ, was commended for convening the Extraordinary Organ Summit and for his leadership in fostering regional cooperation for peace, security, and stability. President Hichilema emphasized the importance of global collaboration with international and regional bodies to address environmental challenges that threaten peace and stability.

He stressed the need for a more stable region to optimize resources towards improving livelihoods, especially in light of climate change exacerbating resource constraints. President Hichilema highlighted the continent’s agenda to mobilize capital, technology, and partnerships for joint ventures, focusing on beneficiation, value addition, job creation, and economic growth.

The remarks were made during the official closing of the extraordinary Summit, which also addressed contributions to SADC missions in the DRC and Mozambique. The summit concluded with a resounding commitment to regional peace, security, and prosperity, emphasizing cooperation and collective action to address challenges and promote sustainable development across the SADC region. Lusaka Times

Trucks waiting for customs process at the Rusumo border post. PHOTO | FILE | NMG

Rwanda and Tanzania are moving to open a new border post, as the two countries deepen trade ties at a time trade and political forces pull regional partners in different directions. The new post will be opened at Tanzania’s Kyerwa district in Kagera Region to provide a second passage for people and goods and reduce pressure on the Rusumo border post.

Tanzania’s Minister of Foreign Affairs and East African Cooperation, January Makamba, said this in Kigali during his recent four-day visit to Rwanda.

“We want to make it easy for people of the two countries to cross and visit each other,” he said. “We have talked about the possibility and readiness to open a new border front in Kyerwa, and we are ready to have it operational.”

The minister, who led a delegation that included senior officials from the Tanzanian Ministries of Transport, Trade and Industry, ICT, Agriculture, Energy, and other key parastatals, said Tanzania is committed to expand business with Rwanda.

Read: Samia, Kagame discuss trade expansion deals

“We are committed to being a reliable partner, and keen to expand business with Rwanda. Tanzania is Rwanda’s second largest trading partner, the potential to be first exists,” he said. 

He highlighted existing business projects Rwanda and Tanzania are involved in such as the Rwandan dairy factory located in Mwanza, which opened up the Tanzanian market to Rwandan milk.

“Rwanda uses Tanzania broadband infrastructure for a certain amount of capacity in its connectivity. We have committed to be a reliable partner in this area, and we are keen to expand this.”

Rwanda’s Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, said a second border post would come with a lot of economic prospects and trade value for Rwanda.

“We must work together to solve common challenges and prioritise things that will improve the lives of people from our two countries. The bilateral relations between our two countries have always been excellent and they keep improving to greater heights.”

Rwanda’s Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, said a second border post would come with a lot of economic prospects and trade value for Rwanda.

“A new border post is a good proposition, it will even be much closer to Rwanda. It will definitely ease the cargo pressure on Rusumo. From a trade perspective, this is a development that we welcome,” he said.

The new border post is part of a raft of measures to scale up trade ties between the two East African countries. Others include harmonisation of levies, a concern which was raised by Rwandan and Tanzanian truckers.

Read: High hopes border reopening will cut cost of goods

Dodoma and Kigali have enjoyed good bilateral and trade relations over the years, with volumes of Rwanda bound cargo going through Tanzania growing exponentially in the past three decades.

The armed conflict in the Democratic Republic of Congo has recently put the two countries on a collision course, as Dodoma signed up to deploy its military in eastern DRC under the Southern African Development Community, alongside Malawian and South African armies to help the Congolese army defeat the M23 rebel group, who Kinshasa says are backed by Rwanda.

Western powers like the US and even UN experts have cemented these claims, which Kigali continues to reject.

Rwanda is the third largest user of Dar es Salaam port, with more than 80 percent of its cargo going through it.

As relations with DRC -- Rwanda’s leading trading partner for years -- collapse, Kigali will has seen the need but nurture ties with strategic regional neighbours like Tanzania.

Rwandans buy cereals, cement, garments, fuels, and many other goods from Tanzania. By MOSES K. GAHIGI, The East African

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