IFC Business News

Working in South Africa, the Country of Contradictions

After working for seven years in the UK, Tyron Whitley last year made the move back home to South Africa with some trepidation. But 18 months on, his company, the South African Car Import Agency (SA-CIA), which helps other returnees ship their vehicles back from emigre destinations – has been a success and the 34 year old now feels pretty positive about his native land.

“When we first came back, we wondered what we were doing. Crime was a concern and initially power cuts meant that we found ourselves sitting in the house with candles studying how generators worked,” he says. “But doing business here has been a breeze.”

Johannesburg, South Africa

Johannesburg, South Africa

His experience illustrates the contradictory character of South Africa as a place to work. On the one hand, its legal system, banking and financial facilities, and road infrastructure compare favorably with those of the developed world. On the other, around early 2008, South Africa experienced a period of erratic electricity supply. Also, the incidence of crime, especially violent crime, is among the worst anywhere. It must be noted that, over the past year, South Africa has made significant progress in dealing with the power issue and power blackouts are, for the most part, now a rarity.

A glance at this year’s tables measuring the ease of doing business and prepared by the International Finance Corporation (IFC) – the business arm of the World Bank – highlights South Africa’s advantages. South Africa ranks 34th, only three places behind France, well ahead of other European countries such as Spain, Portugal, and Italy and substantially ahead of fashionably large emerging markets such as Brazil, Russia, China and India, the so-called BRICs. Read the rest of this entry »

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Helios Towers Nigeria (HTN) Secures World Bank-IFC Funding to Expand Network

Helios Towers NigeriaHelios Towers Nigeria (HTN) has secured a $100 million investment from the World Bank’s International Finance Corporation (IFC) as part of a $250 million capital injection that will help the company increase its network to 2,000 sites nationwide.

IFC disbursed an initial $50 million in mezzanine financing on August 21, and on September 30, signed an agreement to lend an additional $50 million in senior debt. IFC also is arranging $150 million in senior debt from a number of commercial and development finance institutions.

HTN builds and maintains a network of telecommunications towers and leases space on these towers to wireless telecommunications services providers. The increased coverage will help wireless operators roll out their services more economically and enable the extension of affordable mobile services to semi-urban and rural areas. Read the rest of this entry »

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Absa & Interntaional Finance Corporation (IFC) in $150 Million Infrastructure Funding Deal

AbsaSouth African banking group Absa said on Thursday it has entered into a $150 million funding deal with the International Finance Corporation (IFC) to invest in sub-Saharan African infrastructure projects.

Absa, said it would also use the funds from the World Bank’s private sector finance arm to explore other opportunities in the region.

“Absa through Absa Capital shall focus particularly on infrastructure development in the telecommunications; oil and gas; and power and energy sectors,” Absa CEO Maria Ramos said in a press briefing. Absa Capital is Absa’s investment banking arm. Read the rest of this entry »

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International Finance Corporation (IFC) Plans More Spending on Oil in Sub-Saharan Africa

Oil WellInternational Finance Corporation (IFC), the World Bank Group’s private-sector lending arm, plans to increase spending on sub-Saharan Africa’s oil and gas industry and sees “significant” opportunities in Ghana, Uganda, and Tanzania.

“Africa is a focus region for us,” Kamal Dorabawila, the IFC Head of Oil and Gas in Africa, said from Cape Town today.

The IFC has invested $400 million in Africa, about 19% of its global oil and gas total, Kamal Dorabawila said.

Ghana expects to pump 500,000 barrels of oil a day by 2014 as it seeks to boost supplies to the domestic market and become Africa’s newest crude exporter. Chairman King recently reported that Ghana will become one of the world’s top 50 oil producers.

Tullow Oil Plc. has drilled 25 wells in the Lake Albert Rift Basin in Uganda since January 2006, of which 24 found oil and gas.

IFC, Standard Chartered Bank Plc, BNP Paribas SA, Societe Generale SA, Absa Group Ltd. and Calyon are among financial institutions that helped Kosmos Energy LLC get a $750 million loan to fund Ghana’s Jubilee Field phase one development. Jubilee “is a world class oil discovery” and Ghana’s offshore is a highly prospective area, Dorabawila said.

Ghana is seeking private investors to build three or four refineries, with at least one being located in the country’s Western region, the site of the Jubilee offshore oil field. Read the rest of this entry »

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Doing Business in Africa Getting Easier, says World Bank/International Finance Corporation (IFC)

Doing Business 2009Botswana led a record year for African reformers making it easier to do business, with 28 countries completing 58 improvements

Botswana was one of the world’s top three reformers of business regulations, according to “Doing Business 2009″, an annual report published by the World Bank and the International Finance Corporation (IFC). Ghana was judged the best place to do business in West Africa for the second year in a row. Senegal has made it easier to start a business, register property, and trade across borders.

Burkina Faso introduced a new labor code and reforms for registering property, dealing with construction permits, and paying taxes. Botswana has cut the time to start a business, facilitated trade, and strengthened investor protections. Read the rest of this entry »

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