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TCN Gets $245m for Transmission Grid Expansion

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Electricity - Investors King
  • TCN Gets $245m for Transmission Grid Expansion

France, through its development agency – the French Development Agency (AFD), has approved for the Transmission Company of Nigeria (TCN), a total of $245 million financial package to undertake its expansion of Nigeria’s electricity grid at the northern ends of the country.

A statement from TCN’s General Manager, Public Affairs, Mrs. Ndidi Mbah, explained that the board of AFD approved the $245 million on December 20, 2018.

Mbah, stated that the funding would enable TCN undertake the Northern Corridor Project under its Transmission Rehabilitation and Expansion Program (TREP).

She noted that apart from the AFD’s $245 million financial package for the project, the European Union (EU) had earlier approved a grant of €25 million for the project.

According to her, the approval of the Northern Corridor Project by the board of AFD and European Union was a significant step towards establishing a modern electricity grid in Nigeria.

She noted that while the TREP sought to rehabilitate, stabilise and provide necessary transmission redundancy consistent with international standard in the form of N-1, as well as expand the national grid to take at least 20,000 megawatts (MW) of generated electricity soon, its implementation has attracted significant support from multilateral and bilateral donors such as the AFD; World Bank; African Development Bank (AfDB); and Japan International Cooperation Agency (JICA).

The Northern Corridor Project, she stated would form the backbone for the West African Power Pool (WAPP) north core which would connect Nigeria; Niger Republic; Benin Republic and Burkina Faso on 330 kilovolt (kV) Double Circuit (DC) transmission line.

“It is also expected to construct the Kainji-Birnin-Sokoto 330kV DC line, Katsina-Daura-Gwiwa-Jogana-Kura 330kV DC line and reconstruct one of the Shiroro-Kaduna 330kV Single Circuit transmission lines into 330kV quad line which will be the first of its kind in Nigeria.

“The project will construct 330/132/33kV substations in Sokoto, Daura and Jogana-Kano and 132/33kV substations at Birnin Gwari, Argungu and Lambata in Niger State and equally rehabilitate Jebba and Kainji switch yards to ensure adequate capacity to evacuate Mainstream’s expansion plans,” Mbah, explained.

Additionally, she said with the support of the Federal Ministry of Finance, the AFD was also assisting the TCN to construct the Sokoto-Kaura Namoda-Katsina 330kV DC line, which would lead to the closure of the 330kV loop and would cost $55 million.

She informed that the TCN has commenced preparation for the construction of the Sokoto-Kaura Namoda-Katsina line and 330/132/33kV substation project at Kaura Namoda.

“The project when completed will provide the necessary flexibility and redundancy as well as significantly improve bulk power supply to all the states in the Northwest and parts of the Northcentral states,” she added.

According to her, the AFD would be the first of TCN’s donor to support implementation of Greenfield transmission infrastructure in Nigeria. The project, Mba said would be implemented without delay.

She further explained that the implementation of the TREP was on track and that contracts for the construction of five transmission substations in Abuja and new Lafiya to Abuja 330kV transmission line also financed by AFD have all been signed.

The Northern corridor Project would enhance social economic development of the North-west by attracting investments in industries and commercial outfits to improve livelihoods in the regions.

Meanwhile, the TCN also disclosed that it has completed the installation and commissioning of a brand new 80 megavolts amp (MVA) capacity 132/33kV transmission substation in Daura and a new 60MVA-132/33kV power transformer in its Katsina substation.

It said the brand new Daura sub-station which comprise of two 40MVA power transformers with six 33kV feeders was built to resolve the power supply situation in Daura and environs.

Also, it noted that the new 60MVA power transformer with three 33kV feeders in its Katsina transmission substation has increased the stations transmission capacity from 120MVA to 180MVA, thus making it available for bulk electricity to be sent to the Kano electricity distribution company (Disco) for all its customers in Daura, Katsina and environs.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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AB InBev Opens Applications For Beer Garage Africa Innovation Challenge

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The world’s largest beer company, AB InBev, has partnered with Hindsight Ventures to launch the Beer Garage Africa Innovation Challenge, which will offer startups access to venture development and grant funding.

AB InBev, which has over 500 brands and over six million B2B customers in over 100 countries, launched Beer Garage a few years ago with the objective of driving innovation by building a strong community of ecosystem stakeholders.

As part of this initiative, AB InBev is now launching the Beer Garage Africa Innovation Challenge, a pan-African challenge to identify hi-tech, high potential startups and founders building innovative solutions across Africa.

To do so, it has partnered with Startup Réseau, an India-headquartered global startup accelerator, which will operate the programme through its Africa-focused vertical Hindsight Ventures.

Ten startups will be selected to take part in a Global Venture Bootcamp, a three-week venture mentorship and leadership development programme that will be delivered by successful founders, industry leaders, domain experts and investors. The Beer Garage Africa Innovation Challenge will culminate with a demo day, which will be attended by AB InBev’s global leadership as well as Hindsight Ventures’ global investor pool. On the demo day, one African startup will stand to win US$5,000 in grant capital. All selected startups get access to US$150,000 in technology credits from partners.

“We are really excited by this partnership, which allows us to drive a pan-African program. With a billion people in the continent, over 300 million new internet users expected to come online over the next three years, a fast-growing mobile internet penetration – and now, with global venture capital money making its way to African entrepreneurs, this is a great opportunity for startups to engage with AB InBev as a partner of choice,” said Ajay Ramasubramaniam, founder and chief executive officer (CEO) of Startup Réseau.

Pritam Dutta, global director for fintech ventures and innovation at AB InBev, said the Beer Garage Africa Challenge was an opportunity to leverage the emerging tech startup ecosystem and funnel novel ideas into AB InBev.

“We set out to build out a stronger connect into the Africa ecosystem, find disruptive startups which could be a great pipeline for our future disruptive innovations and further accelerate our innovation agenda, delivering strong business impact,” he said.

Applications for the challenge are now open here.

Beer Garage is one of the global innovation hubs at AB InBev with the objective of driving innovation by building a strong community of ecosystem stakeholders.

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Merger and Acquisition

Sub Saharan Africa Mergers and Acquisition Transactions Totalled US$ 78.3 Billion During First Nine Months of 2021

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Refinitiv today released the Sub-Saharan African investment banking analysis for the first nine months of 2021. According to the report, an estimated US$387.5 million worth of investment banking fees were generated in Sub-Saharan Africa during the first nine months of 2021, a 15% increase from the same period in 2020. 

While debt capital markets underwriting fees increased 148% to US$117.8 million, the highest year-to-date period since our records began in 2000, fees from equity capital markets underwriting, M&A advisory and syndicated lending all declined from the first nine months of 2020.  Equity fees declined 17% to US$50.7 million, while syndicated lending fees declined 4% to US$148.2 million. Advisory fees earned in the region from completed M&A transactions reached US$70.8 million, down 3% from last year to the lowest first nine-month total since 2013.  Fifty-eight percent of all Sub-Saharan African fees were generated in South Africa during the first nine months of 2021, and 23% were earned from deals in the financial sector. Standard Chartered earned the most investment banking fees in the region during the first nine months of 2021, a total of US$33.1 million or an 8.5% share of the total fee pool.

MERGERS & ACQUISITIONS

Boosted by the US$44.1 billion Naspers/Prosus share swap in May, the value of announced M&A transactions with any Sub-Saharan African involvement reached US$78.3 billion during the first nine months of 2021, more than four-times the value recorded during the same period last year and the highest first nine-month total since our records began in 1980.  The number of deals increased 4% from last year to a three-year high of 584.

M&A involving a Sub-Saharan African target reached US$61.8 billion, again lifted by the share swap to an all-time record first nine-month total, while the number of deals increased 8% over last year.  Inbound deals, involving an acquiror outside of Sub-Saharan Africa, increased 86% to US$9.6 billion, while Sub-Saharan African outbound M&A more than doubled to US$11.5 billion. With advisory work on deals worth a combined U$52.1 billion, Morgan Stanley held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during the first nine months of 2021.

EQUITY CAPITAL MARKETS

Sub-Saharan African equity and equity-related issuance reached US$971.2 million during the third quarter of 2021, the highest quarterly total in more than two years.  Despite the strong third quarter, total proceeds raised during the first nine months of 2021 was down 42% from last year at US$1.2 billion, the lowest first nine-month total since 2005.   Pepkor Holdings, Lighthouse Capital and retail pharmacy chain Dis-Chem Pharmacies were among those in the region raising new equity funds from follow-on offerings during the third quarter.  There have been no initial public offerings in the region so far during 2021. Investec and Goldman Sachs share first place in the Sub-Saharan African ECM underwriting league table during the first nine months of 2021. 

DEBT CAPITAL MARKETS

Sub-Saharan African debt issuance totalled US$37.2 billion during the first nine months of 2021, up 149% from the value recorded during the same period in 2020 and the highest first nine-month total since our records began in 1980.  The number of issues increased 33% over the same period.  US$15.2 billion worth of the bond proceeds were raised during the third quarter alone, with both Prosus and the Federal Government of Nigeria raising US$4.0 billion.  Government & Agency issuance accounted for 55% of proceeds raised during the first nine months of 2021, while the financial sector accounted for 24%. Citi took the top spot in the Sub-Saharan African bond book runner ranking during the first nine months of 2021, with US$6.0 billion of related proceeds, or a 16% market share.

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Merger and Acquisition

Access Bank Completes Acquisition of African Banking Corporation of Botswana Limited

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Herbert Wigwe - Investors King

Africa’s leading bank, Access Bank Plc has now completed the acquisition of a 78.15 percent shareholding in African Banking Corporation of Botswana Limited (BancABC Botswana).

Access Bank announced in a statement signed by Sunday Ekwochi, Company Secretary, Access Bank Plc.

According to the lender, the new acquisition will form part of the Bank’s nexus for trade and payments in Southern Africa and the broader COMESA trade region.

BancABC Bostwana is the fifth-largest bank in Botswana and is a well-capitalized franchise poised for growth in its local market. The lender’s achievements in the retail banking space will provide an opportunity for the Bank to deploy its best-in-class digital platforms and product suites to the benefit of BancABC Botswana’s customers and enable it to complete strongly across its core business segments.

Commenting on the transaction, Dr. Herbert Wigwe, GMD/CEO of the Bank, “We are pleased with the successful conclusion of this transaction which will provide significant synergies by combining BancABC Botswana’s strong retail banking operation with Access Bank’s wholesale banking capabilities. It will also strengthen the quality of earnings through revenue diversification and growth in the corporate and SME banking segments for BanABC Botswana. The combination is another step towards our broader vision of becoming the world’s Most Respected African Bank.”

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