TechCabal Daily – Ghana gets the bag

18 MAY, 2023

GHANA SECURES $3 BILLION FROM THE IMF

The International Monetary Fund (IMF) has granted Ghana a $3 billion bailout to help its financial restoration from the debt disaster. This approval has boosted investor confidence, leading to Ghana’s foreign money, the cedi, turning into the world’s prime performer towards the greenback.

How effectively is the Cedi performing? As of yesterday, the foreign money reportedly traded 1.7% stronger at GH₵‎10.8625 per greenback in Accra, Ghana’s capital. Additionally, Ghana’s Eurobond maturing in 2032 skilled a lift, rising 0.5 cents to 40.2 cents on the greenback. Investors had been wagering on the approval of the bailout.

What will this funding do? The permitted funding will serve to replenish Ghana’s foreign-exchange reserves, which have seen a big decline of practically 50% since their peak in August 2021.

Sounds thrilling. The authorities is gearing as much as obtain a large injection of money, and we’re speaking huge numbers right here. There can be an preliminary disbursement of a whopping $600 million. Another hefty $600 million is on its means in November, adopted by equal instalments of $350 million each six months, pending these important critiques by the IMF. That’s a complete lot of zeros, however there’s extra! Ghana can be set on securing an extra $900 million in price range help from the World Bank over the course of a three-year interval.

There remains to be extra: Ghana is rolling up its sleeves for some critical negotiations. It is at present in talks to restructure $13 billion of its debt. Notably, a bilateral collectors group co-chaired by China and France performed a significant function in restructuring Ghana’s debt beneath the Common Framework, which ensures honest burden sharing.

Ghana is leaving no stone unturned. With money injections, price range help, and debt restructuring on the horizon, it appears like the nation is Ghana make it out of Sapa land.

MONIEPOINT RANKED 2ND FASTEST-GROWING AFRICAN COMPANY

EGYPT SELLS 9.5% STAKE IN TELECOM EGYPT

Egypt’s finance ministry on Sunday introduced the sale of its 9.5% stake in Telecom Egypt, elevating 3.75 billion Egyptian kilos ($121.6 million). 

Per reviews from Bloomberg, filings submitted to the Egyptian Stock Exchange point out that 162.2 million shares have been bought at 23.11 Egyptian kilos ($0.75) every.

Prior to this current transaction, the authorities’s possession in the Egyptian Stock Exchange-listed firm stood at 80%, whereas the remaining 20% was publicly traded on the Egyptian Exchange.

The authorities can be providing 0.5% of Telecom Egypt to workers to purchase by May 25, which can deliver the complete asset sale to 10%. Overall, it’ll scale back the authorities’s stake to 70%.

This transfer is a part of the authorities’s privatisation programme, aimed toward advancing its financial agenda.

Egypt is determined to boost income from privatising state-owned companies with a purpose to meet a collection of international debt obligations that can be due in a couple of months. The authorities introduced the sale of its stakes in Telecom Egypt virtually two months after it first mentioned it deliberate to cut back the authorities’s possession in the firm.

Egypt purging belongings: The sale of 9.5% of Telecom Egypt marks the second transaction following prime minister Mostafa Madbouly’s dedication on April 29 to proceed with the deliberate divestment of presidency stakes in 32 corporations. The goal is to boost $2 billion by the finish of June.

As a part of a $3 billion, 46-month monetary help package deal signed in December 2022, Egypt has dedicated to decreasing its intervention in the economic system and facilitating a extra outstanding function for personal corporations. This transfer aligns with the settlement made with the International Monetary Fund (IMF) to advertise financial liberalisation and better participation of personal entities.

ZIMBABWEAN GOLD MAFIA CLEARED OF ACCUSATIONS

Remember these alleged Zimbabwean gold mafia members who have been accused of looting the nation’s treasured gold reserves? 

Well, maintain onto your seats as a result of they’ve simply been cleared of all wrongdoings. Apparently, the investigations into their funds revealed no proof of gold smuggling on their half, so their accounts have been unfrozen and so they have been let go. 

Everyone is asking how no proof was discovered regardless of the damning documentary by Al Jazeera. But the greater query is, is now actually the greatest time to unfreeze the accounts of people accused of exploiting their entry to the gold reserves?

Why are individuals asking that? Last month, the Reserve Bank of Zimbabwe (RBZ) launched a gold-backed digital foreign money backed by the nation’s gold reserve. The digital authorized tender is considered one of the a number of measures the authorities is taking to take care of the nation’s foreign money, the Zimbabwean greenback, nosediving towards the American greenback. Holders of the gold-backed token can alternate their cash for the tokens with a purpose to retailer worth and protect themselves from the volatility of the alternate price.

The tokens, backed by 139.57 kilograms of gold, have been on sale from May 8 to May 12. The International Monetary Fund (IMF) cautioned Zimbabwe that backing a digital foreign money with its gold reserve could be very dangerous. However, the nation introduced that it has bought Z$14 billion value of gold-backed digital tokens—value round $39 million after receiving purposes from 135 patrons. The nation is organising one other collection of digital token gross sales and has requested for purposes to be submitted this week. The settlement of those purposes is predicted to happen by May 18.

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TIZETI + MICROSOFT BRIDGE BROADBAND GAP IN COTE D’IVOIRE

Tizeti, a Nigerian web service supplier, has partnered with Microsoft to deliver its broadband resolution to Cote d’Ivoire and convey web entry to virtually 5 million individuals.

The partnership goals to deliver reasonably priced high-speed Internet to underserved communities, boosting financial growth and digital inclusion in Cote d’Ivoire. The nation’s web penetration price stood at 45.4%, with 12.94 million web customers in Côte d’Ivoire at the begin of 2023.

Tizeti, in collaboration with Microsoft’s Airband Initiative, will introduce high-speed web infrastructure utilizing Tizeti’s reasonably priced wi-fi applied sciences.

What is an Airband Initiative?: The time period “Airband” is a mix of “airwaves” and “broadband,” emphasising the use of wi-fi spectrum to offer web entry in areas missing wired infrastructure or with restricted connectivity choices.

An Airband initiative is a programme or endeavour with the aim of extending broadband web availability to rural and underserved areas utilizing wi-fi applied sciences, notably utilising unused or underutilised TV white areas.

These collaborative endeavours contribute to the Microsoft Airband Initiative’s pledge to offer web entry to 100 million individuals in Africa by the finish of 2025. This dedication aligns with Tizeti’s goal of cost-effectively connecting a bigger inhabitants to the web.

The partnership would make Cote d’Ivoire the third nation that Tizeti is current in after Ghana and Nigeria. The firm additionally has plans to increase to Togo. 

THE WORLD WIDE WEB3

Bitcoin	$27,416	+ 1.52%
Ether	$1,823	– 0.03%
BNB	$314	+ 0.90%
Cardano	$0.37	+ 2.34%
Name of the coin Price of the coin 24-hour proportion change		Source: CoinMarketCap

* Data as of 00:40 AM WAT, May 18, 2023.

Members of the Parliament in the UK need crypto to be regulated like playing. Bloomberg reviews that the Treasury Select Committee is recommending that crypto belongings like bitcoin must be regulated like playing as a result of they’re extremely risky and haven’t any intrinsic worth.

Is a China ban on NFTs potential? Per CoinDesk, China’s nationwide company chargeable for prosecution has launched new pointers that state that non-fungible tokens (NFTs) share the identical attributes with crypto and must be taken extra significantly.

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REPORT: THE STATE OF TECH IN AFRICA

Between January and March 2023, African startups raised $857 million in Venture capital funding. While this pales compared to Q1 2022’s figures, the continent noticed its largest acquisition ever: Tunisian AI startup, Instadeep’s, $680 million acquisition by BioNTech. There is extra to be uncovered on this quarter’s version of the State of Tech in Africa. 

Download right here.

IN OTHER NEWS FROM TECHCABAL

Entering Tech #30: How ConTech Africa helps creators in tech.

The story behind M-KOPA’s $250 million debt and fairness elevate.

OPPORUNITIES

• The SaaS Accelerator Program: Africa 2023 has opened purposes for its accelerator programme to allow early startups in Africa to obtain funding. Selected startups will obtain as much as $70,000 in funding. Apply by September 7.

• Wise Guys SaaS Accelerator Program is trying to assist SaaS startups stage up by means of tailor-made steerage and help from world-class mentors and specialists. Apply earlier than September 7.

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