Latest news with #African-owned
Yahoo
5 days ago
- Business
- Yahoo
GEIL-operated Otakikpo onshore terminal completes first crude oil export
Green Energy International (GEIL) has completed the first crude oil export from its Otakikpo onshore terminal in Nigeria, reported the Nigerian Observer. The inaugural shipment was facilitated on 8 June, with a vessel chartered by Shell transporting the maiden cargo from the terminal in Rivers State's Otakikpo marginal field. The Otakikpo terminal is reportedly the first privately constructed and managed onshore crude export terminal in Nigeria in more than five decades. GEIL chairman Anthony Adegbulugbe said: 'We are deeply grateful to all our partners and commend the dedication of our indigenous technical team, who worked relentlessly to bring this project to life. This is a moment of pride for Nigeria and a milestone for African-owned energy enterprises.' The terminal currently has a storage capacity of 750,000 barrels and is equipped to handle the export of 360,000 barrels per day (bpd). GEIL has plans to expand the storage capacity to three million barrels, the report said. The project's initial phase saw an investment of more than $400m (£295.34m), with total development costs expected to surpass $1.3bn. Designed to accommodate up to 250,000bpd of crude, the Otakikpo field's present production is around 10,000bpd. GEIL pointed out that the terminal provides a strategic solution for the evacuation of crude from more than 40 nearby stranded oilfields, which together are estimated to hold more than three billion barrels of oil equivalent. Otakikpo terminal is expected to boost Nigeria's crude production, lessen reliance on offshore terminals and encourage new investments in the nation's oil sector. With the global demand for African crude increasing, the terminal is poised to draw more investor interest and strengthen Nigeria's position in the international energy market. GEIL emphasised that the Otakikpo facility is set to play a crucial role in enhancing crude evacuation and supporting production growth, aligning with Nigeria's long-term energy strategy. "GEIL-operated Otakikpo onshore terminal completes first crude oil export" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Zawya
10-04-2025
- Business
- Zawya
African credit ratings can absorb aid cuts and trade strains, Fitch says
Pressure from U.S. aid freezes and global trade tension is unlikely to result in widescale credit downgrades in Africa, Fitch Ratings said on Thursday. The impact of tariffs on Africa is limited, Fitch said, due to the region's export composition and weaker integration into global supply chains compared to a region such as Asia. But Sub-Saharan Africa has been one of the largest recipients of funds disbursed by the United States Agency for International Development (USAID) which was frozen by executive order of U.S. President Donald Trump. Nonetheless, South Africa, Namibia and Ivory Coast remain relatively shielded from recent events, Paul Gamble, head of Middle East/Africa in Fitch's Sovereign Ratings Group, said. And Nigeria and the Seychelles both hold positive credit outlooks from Fitch Ratings - an indication that a rating is expected to be raised in the future - thanks to ongoing reforms, he told a webinar. "The reforms that we've seen really put the region in a better position to absorb some of these shocks," Gamble. "The impact for the ratings looks manageable." However, the freeze on U.S. foreign aid was not without negative consequences, Fitch said. Some of the poorest nations were at risk for having projects come to an abrupt end and would see fiscal stability come under pressure. Ethiopia received U.S. assistance worth around 80% of its foreign exchange reserves, with Mozambique, Uganda, and Lesotho also seen at risk. "African-owned multilateral banks might become more important institutions in this shifting landscape," Arnaud Louis, senior director at Fitch, said on the webinar. Gamble also pointed to Washington's pivot to strategic investments in minerals in Africa as potentially becoming a new sphere for the trade tensions as it could intensify competition on the continent with China. "Africa will be a playing field for U.S.-China tensions," said Gamble. The U.S. interest is becoming "more opportunistic, transactional" focusing on access to minerals and rare earths rather than broad-based development, he said. The Trump administration has said it wants to invest billions of dollars in the Democratic Republic of Congo. Congo's minerals, which are used in mobile phones and electric cars, are currently dominated by China and its mining companies. (Reporting by Colleen Goko; Editing by Alison Williams)
Reuters
10-04-2025
- Business
- Reuters
Trade tensions, aid cuts won't trigger Africa credit downgrades
JOHANNESBURG, April 10 (Reuters) - Pressure from U.S. aid freezes and global trade tension is unlikely to result in widescale credit downgrades in Africa, Fitch Ratings said on Thursday. The impact of tariffs on Africa is limited, Fitch said, due to the region's export composition and weaker integration into global supply chains compared to a region such as Asia. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. But Sub-Saharan Africa has been one of the largest recipients of funds disbursed by the United States Agency for International Development (USAID) which was frozen by executive order of U.S. President Donald Trump. Nonetheless, South Africa, Namibia and Ivory Coast remain relatively shielded from recent events, Paul Gamble, head of Middle East/Africa in Fitch's Sovereign Ratings Group, said. And Nigeria and the Seychelles both hold positive credit outlooks from Fitch Ratings - an indication that a rating is expected to be raised in the future - thanks to ongoing reforms, he told a webinar. "The reforms that we've seen really put the region in a better position to absorb some of these shocks," Gamble. "The impact for the ratings looks manageable." However, the freeze on U.S. foreign aid was not without negative consequences, Fitch said. Some of the poorest nations were at risk for having projects come to an abrupt end and would see fiscal stability come under pressure. Ethiopia received U.S. assistance worth around 80% of its foreign exchange reserves, with Mozambique, Uganda, and Lesotho also seen at risk. "African-owned multilateral banks might become more important institutions in this shifting landscape," Arnaud Louis, senior director at Fitch, said on the webinar. Gamble also pointed to Washington's pivot to strategic investments in minerals in Africa as potentially becoming a new sphere for the trade tensions as it could intensify competition on the continent with China. "Africa will be a playing field for U.S.-China tensions," said Gamble. The U.S. interest is becoming "more opportunistic, transactional" focusing on access to minerals and rare earths rather than broad-based development, he said. The Trump administration has said it wants to invest billions of dollars in the Democratic Republic of Congo. Congo's minerals, which are used in mobile phones and electric cars, are currently dominated by China and its mining companies.
Zawya
10-02-2025
- Business
- Zawya
Africa to establish its credit rating agency
ADDIS ABABA: The African Union (AU) will set up the Africa Credit Rating Agency (AfCRA) next week during a meeting of heads of state and government on the margins of the 37th AU Ordinary Summit here, Ethiopian News Agency (ENA) reported. As the continent continues its march towards economic integration and resilience, the establishment of Africa Credit Rating Agency (AfCRA) represents a pivotal step in asserting Africa's position on global financial governance. In this regard, Heads of State and Government are set to convene for a Presidential Dialogue on the establishment of an Africa Credit Rating Agency on 14 February 2025. Facilitated by the African Peer Review Mechanism (APRM), the event will also bring together policymakers, financial experts, and development partners to deliberate on the operationalisation of a dedicated credit rating agency for the continent. According to ENA, The event to be held on the margins of the 37th AU Ordinary Summit at the African Union Headquarters, underscores Africa's commitment to enhancing the continent's financial sovereignty and addressing long-standing challenges associated with the three international credit rating agencies. The establishment of an Africa Credit Rating Agency aims to provide fair, transparent and development-focused credit ratings that reflect the realities and potential of African economies. The Africa Credit Rating Agency (AfCRA) is a continental initiative aimed at providing independent, credible, and African-owned credit ratings for sovereigns, sub-sovereign and corporates. Its primary objective is to enhance transparency, reduce reliance on the three international credit rating agencies, and address the specific needs of African countries, institutions and contexts. AfCRA was established to address concerns over perceived biases, inaccuracies, and high costs associated with international credit rating agencies when assessing African countries. It will provide an opportunity for the continent to have a credit rating system that reflects Africa's unique socio-economic realities and fosters a fairer representation of its creditworthiness. AfCRA will reduce the cost of credit ratings for African countries and businesses, increase their access to capital markets, and ensure a fairer representation of their creditworthiness. It will also provide a platform for promoting African projects and investments, driving economic growth and regional financial stability.
Zawya
07-02-2025
- Business
- Zawya
African leaders convene on establishment of homegrown solution, the Africa Credit Rating Agency
As the continent continues its march towards economic integration and resilience, the establishment of Africa Credit Rating Agency (AfCRA) represents a pivotal step in asserting Africa's position on global financial governance. In this regard, Heads of State and Government are set to convene for a Presidential Dialogue on the Establishment of an Africa Credit Rating Agency on 14 February 2025. Facilitated by the African Peer Review Mechanism (APRM), the event will also bring together policymakers, financial experts, and development partners to deliberate on the operationalisation of a dedicated credit rating agency for the continent. The event to be held on the margins of the 37th AU Ordinary Summit at 0800hrs EAT at the African Union Headquarters, underscores Africa's commitment to enhancing the continent's financial sovereignty and addressing long-standing challenges associated with the three international credit rating agencies. The establishment of an Africa Credit Rating Agency aims to provide fair, transparent and development-focused credit ratings that reflect the realities and potential of African economies. Key objectives of the meeting include: Reaffirming the political will and collective commitment towards AfCRA's establishment. Discussing the progress of the ongoing technical work. Outlining the role of AfCRA in supporting Africa's financial stability and growth. Exploring avenues for collaborative partnerships with development partners and international financial institutions. Here are 10 things you need to know about the Africa Credit Rating Agency. What is the Africa Credit Rating Agency (AFCRA)? The Africa Credit Rating Agency (AfCRA) is a continental initiative aimed at providing independent, credible, and African-owned credit ratings for sovereigns, sub-sovereign and corporates. Its primary objective is to enhance transparency, reduce reliance on the three international credit rating agencies, and address the specific needs of African countries, institutions and contexts. Why was AFCRA established? AfCRA was established to address concerns over perceived biases, inaccuracies, and high costs associated with international credit rating agencies when assessing African countries. It will provide an opportunity for the continent to have a credit rating system that reflects Africa's unique socio-economic realities and fosters a fairer representation of its creditworthiness. How does AfCRA differ from traditional credit rating agencies? Unlike traditional credit rating agencies, AfCRA focuses exclusively on African economies, incorporating region-specific data and socio-economic indicators. It will operate with a mandate to strengthen African financial markets while promoting transparency, fairness and inclusivity. AfCRA will also emphasize development-driven credit assessment frameworks tailored to the continent's diverse contexts. What is the role of the African Peer Review Mechanism (APRM) in AfCRA? The APRM will continue to play a crucial role as a supporter and strategic partner in AfCRA's development and operations. It will provide governance insights, institutional frameworks, and technical expertise that inform the rating agency's methodologies. The APRM will also ensure that AfCRA aligns with broader African Union objectives of sustainable development and integration. How will AfCRA ensure credibility and independence? AfCRA will be governed by a robust institutional framework with strict policies to prevent conflicts of interest. It will employ highly skilled professionals and adopt transparent methodologies that are in line with international best practices while reflecting African realities. Oversight mechanisms and partnerships with respected institutions will further bolster its credibility. Will AfCRA compete with international credit rating agencies? AfCRA's objective is not to compete with or replace the three international credit rating agencies, but rather to complement them by providing an alternative perspective. It will focus on filling gaps in data and analysis, addressing regional nuances, and promoting African financial integration. This will allow for a diversified view of creditworthiness and fosters collaboration for mutual benefit. How will AfCRA benefit African countries and businesses? AfCRA will reduce the cost of credit ratings for African countries and businesses, increase their access to capital markets, and ensure a fairer representation of their creditworthiness. It will also provide a platform for promoting African projects and investments, driving economic growth and regional financial stability. How will AfCRA address concerns about bias and transparency? AfCRA will be committed to maintaining the highest standards of objectivity, impartiality, and transparency. Its methodology will integrate both quantitative and qualitative factors, ensuring an accurate and fair assessment of creditworthiness. AfCRA will also engage stakeholders, including governments, private sectors, and civil society, to build trust and accountability. When will AFCRA begin its operations? AfCRA is set to officially launch in June 2025 as part of the African Union's broader agenda for financial integration and independence. The establishment process is currently underway, including stakeholder consultations and capacity-building initiatives. How can stakeholders engage with AfCRA? Stakeholders, including governments, financial institutions, and businesses, can engage with AfCRA through consultations, partnerships, and the submission of data for ratings. The agency will also be open to collaboration with global institutions to exchange expertise and foster best practices in credit assessment. Distributed by APO Group on behalf of African Union (AU).
