By Stephen Adams of Global Counsel
Events at west African lender Ecobank over the past six months have been widely and rightly interpreted as an important test for the credibility of African bank governance and regulation. A combination of internal whistleblowing, regulatory pressure and shareholder activism did for former CEO Thierry Tanoh and have prompted a fairly substantial overhaul of bank governance. All good news for African good governance.
But the bigger question for African banks like Ecobank is still unanswered. This is simply that as a cross-border African financial institution, Ecobank is evolving much faster than the institutions that supervise and regulate it. With operations in more than 30 sub-Saharan markets, Ecobank is a complex prospect for African bank supervisors and one that they are only just starting to get to grips with. Continue reading »
Less than three years since civil war erupted in Ivory Coast it’s back to business as usual. Growth rates are now among the highest in Africa and the west African nation is set to return to international capital markets as it looks to finance infrastructure projects and pay off debt. Continue reading »
Randgold chief executive Mark Bristow has criticised a “disturbing” tendency among African governments to increase taxes and regulations on mining investors, as the company disputes its tax bill with the Malian government.
The chief executive of the FTSE 100 gold mining company, which has operations in Mali, the Democratic Republic of Congo and Ivory Coast made his statement at the Mining Indaba conference currently taking place in Cape Town. He claimed that revisions to mining laws risked deterring investment on the continent. Continue reading »
With emerging market debt markets booming, is now time for African nations to join in? If Zambia’s recent bond is anything to go by, the answer would be a firm ‘yes’ – as many analysts are fond of pointing out, Zambia’s yield on its 10-year bond is lower than that of Spain.
So what’s stopping African countries jumping in and issing international bonds? Continue reading »
In a sport where making profits has taken a back seat to on-pitch results, former French football international Jean-Marc Guillou is bucking the trend.
Players trained at his JMG Academy have contracts at top clubs like Manchester City and Arsenal. And his investors are averaging nominal returns of over €15m – over 200 per cent over a ten year period. And Guillou himself, of course, does well too. But it’s a model that is not without critics. Continue reading »
Chocolate lovers, brace yourselves.
Dry and windy weather across the Ivory Coast is sending the price of cocoa, the main ingredient of chocolate, soaring in New York and London. Cocoa to be settled in March has jumped as much as 14 per cent already this week on the ICE Futures US exchange – and sector watchers reckon this could just be the beginning. Continue reading »
Everyone, everywhere is piling into emerging markets and Regus (RGU:LSE), the ready-to-use office space company, knows it.
The company is expanding rapidly to take advantage of the new footloose, flexible, working practices it says are the way forward. Since the only way to do that is to have a presence in as many countries as possible, the UK company intends to “get there first” and is “running through a list of countries”, chief executive Mark Dixon told beyondbrics. Continue reading »
Frontier markets aspiring to emerging market status should take a cue from the Ivory Coast on what not to do. The country announced this week that it would not make any more payments to holders of its $2.3bn of Eurobonds until 2012, citing months of post-election violence which began in November last year as a ”shock to the economy”.
For investors however, the government’s own forecast of $2.7bn in revenues for 2011 makes the total Eurobond coupon payments due this year ($101.1m) look like small change, and raises the question of whether there is more to its decision to delay payment. Continue reading »
Crisis and killing on the streets of Ivory Coast not only ultimately forced out Laurent Gbagbo, the country’s recalcitrant former president; they also all-but closed down the stock exchange serving the whole of west Africa.
But with Alassane Ouattara, the new president, now in place, the exchange is due to re-open on May 16 in the country’s business capital, Abidjan, giving investors a chance to place their bets on the country’s prospects. Continue reading »
It’s one thing to measure political risk in terms of swings in currencies, stock markets and CDS spreads. It’s another to count the costs in your P&L which is what Societe Generale has had to for its operations in Egypt, Tunisia and the Ivory Coast.
The French bank on Wednesday disclosed, in its first quarter results, €50m provisions for the three countries “undergoing political transition”. With net income of €916m, the group can take the hit. But nobody wants to lose that much in what are still peripheral markets. Continue reading »
By Katrina Manson
Following months of violent unrest in Ivory Coast, the IMF predicts that west Africa’s economic giant will contract 7.5 percent this year, making it not only the worst performer on the continent in 2011, but the only sub-Saharan economy predicted to shrink. It’s a massive drop: even in the depths of its civil war in 2003 , its economy contracted only 1.7. Continue reading »
By Katrina Manson
It’s an ill wind….The best-performing emerging market bond of 2011 is none other than the war-torn Ivory Coast’s $2.3bn issue.
It is up 25 per cent for the year to date, says JP Morgan, and around 55 per cent above its low on March 15, when investors took fright amid alarming reports of an imminent military attack on Abidjan, of refugees fleeing abroad and of an extension to a cocoa export ban. But what next for the bond, now that it stands at 54.6 cents to the dollar? Continue reading »
Ivorian leader Laurent Gbagbo was captured on Monday at his besieged residence in Abidjan and is in detention after a French military operation, the BBC reports.
The UN says three generals loyal to Ivory Coast’s besieged President Laurent Gbagbo are negotiating terms for his surrender, reports the BBC.
Gbagbo is sheltering with his family in the basement bunker of his residence in the main city, Abidjan. Troops loyal to his rival, UN-recognised president Alassane Ouattara, say they have surrounded the compound.
Forces loyal to Alassane Ouattara, Ivory Coast’s internationally recognised president-elect, on Tuesday launched an assault on the presidential palace of Laurent Gbagbo, the incumbent who has refused to step down. William Wallis, Africa editor, talks to Daniel Garrahan about what might happen next.