World Bank approves $750m loan for Nigeria’s power sector

The World Bank has approved a $750m International Development Association loan for Nigeria’s Power Sector Recovery Operation (PSRO). The funds are intended to improve the reliability of supply, achieve financial and fiscal sustainability, and help Nigeria move away “from highly regressive tariff shortfall financing.” About 47% of Nigerians do not have access to grid electricity, and shortfalls are estimated to cost the economy $28bn a year.

Chilean firm makes offer for Sun International

Chilean investment firm Nueva Inversiones Pacifico Sur has made an unsolicited offer to buy 50.1% of South African hotel and casino operator Sun International for R22 ($1.27) per share. The offer includes interim liquidity support in the form of a bridge loan of up to R1.2bn. “It is surprising and unfortunate that IPS chose to go public with an unsolicited announcement that is neither an offer nor a firm commitment to make an offer,” Sun International CEO Anthony Leeming said in a statement.

Covid-19 will affect energy investment strategy say investors

Over 50% of African energy market participants polled by African Business Magazine say that Covid-19 will have an impact on their investment strategy in 2020/2021. The poll sought the views of 176 professionals in the energy sector including project developers, investors, policymakers, technologists and legal and regulatory staff. 52% of respondents said that Covid-19 will impact their investment strategy, compared to 32% who said it might and 17% who said that it would not. 40% believe that Covid-19 will lead to investments in the energy sector decreasing, compared to 37% who predict they will remain stable and 23% who expect them to increase.

2019 marked six-year high for venture capital deals in Africa

2019 marked a six-year high in venture capital activity in Africa with 139 deals worth $1.4bn recorded. The number of deals more than doubled between 2014 and 2019, while the value of deals almost doubled between 2018 and 2019, according to the African Private Equity and Venture Capital Association. Fintech and information technology each accounted for 19% of the total volume of VC deals on the continent between 2014 and 2019, followed by consumer discretionary (18%) and industrials (12%). Southern Africa attracted the highest volume of deals (25%), followed by East Africa (23%) and West Africa (21%).