The U.S. Naval Facilities Engineering Systems Command (NAVFAC) Europe Africa Central (EURAFCENT) has awarded a significant $25 million construction contract to five Djiboutian companies. This contract, part of the broader “Africa First” initiative, underscores the commitment of the United States to fostering economic growth and stability in Djibouti.

The contract, which commenced in early April, will enhance infrastructure at Camp Lemonnier and other Department of Defense installations within Djibouti.

“More than 21 years ago, the partnership between the United States and Djibouti at Camp Lemonnier began,” said U.S. Navy Capt. Eilis Cancel, commanding officer of Camp Lemonnier, an operational installation that supports U.S., allied and partner nation forces ensuring security and stability in the Horn of Africa.

“This enduring partnership underscores our shared regional security goals and positively contributes to the Djiboutian economy,” she said. “We welcome these new contracts as an opportunity to continue working closely with our Host Nation partners.”

Notably, the multiple-award construction contract (MACC) stipulates a five-year period of engagement with no extensions, ensuring a sustained influx of projects and financial investment in the local economy.

The contract was awarded under the so called “Africa First” legislation enacted by the U.S. Congress. The legislation, stemming from the National Defense Authorization Act, has played a pivotal role in ensuring that local firms are given priority in such contracts, fostering job creation and business growth within the community.  Africa First gives the Department of Defense the ability to provide procurement preferences to qualifying local companies. Using the Africa First legislation and its implementing regulations, NAVFAC was able to limit competition to Djiboutian companies.

Paul Heavey, a NAVFAC EURAFCENT contracting officer, highlighted the efficiency of this approach: “MACC contracts enable the pre-qualification of contractors based on their performance, experience, capability, and safety. This approach not only streamlines the process but also saves both the command and the government valuable time and resources.”

The awarded companies include:

Prime Projects International, LLC
Cosmezz S.A.R.L.
Mapi Construction S.A.R.L.
SpendSmart Group, LLC
Tremco, LLC

These firms will undertake critical projects ranging from the renovation of facilities to the construction of new infrastructure, directly benefiting the economic landscape of Djibouti. The initial task awarded to Prime Projects involves upgrading water purification systems at Camp Lemonnier.

Capt. Rafael Miranda, commanding officer of NAVFAC Europe Africa Central, praised the local contracting teams for their exceptional work and the positive impact of such collaborations. “Echoing the success of previous contracts with Djiboutian companies, this MACC broadens their access to markets and encourages growth among local enterprises, providing direct benefits to the economy of Djibouti.”

Distributed by APO Group on behalf of U.S. Embassy in Djibouti.

Today, President Abdel Fattah El-Sisi spoke over the phone with President of France, Emmanuel Macron.

Spokesman for the Presidency, Counselor Dr. Ahmad Fahmy, said the two Presidents discussed bilateral relations and ways to foster closer collaboration across various domains, to be commensurate with the historical and strategic nature that characterizes the two countries’ cooperation. The call also focused on developments in the Gaza Strip. President El-Sisi and President Macron reviewed the latest efforts to achieve an immediate, urgent and lasting ceasefire, exchange detainees and hostages and provide access for humanitarian aid. They also tackled the two countries’ efforts to provide medical services to the wounded Palestinians to mitigate the repercussions of the dire humanitarian catastrophe in the sector.

President El-Sisi and President Macron also touched on regional developments in light of the latest escalations. They warned of the potential danger of the region sliding into a large-scale state of instability, stressing that this necessitates an unwavering commitment to the highest degrees of wisdom and self-restraint.

The two Presidents agreed on the imperative need to end the escalation on all fronts. They reiterated that reaching a just and comprehensive settlement of the Palestinian issue, based on the two-state solution, is the path to restoring and consolidating security, peace, and stability for all peoples of the region.

Distributed by APO Group on behalf of Presidency of the Arab Republic of Egypt.

India-listed Varun Beverages Limited (“VBL”), the largest PepsiCo bottler outside of the USA and China, entered into an agreement to acquire 100% of the shares in The Beverage Company Proprietary Limited (“BevCo”). RMB (www.RMB.co.za) acted as sole financial advisor to BevCo and selling shareholders, including a Private Equity Fund managed by The Rohatyn Group (post the completed merger of Ethos Private Equity with The Rohatyn Group in April 2023) and Nedbank Private Equity, in a deal with an enterprise value of R3 billion.

BevCo, is one of the largest carbonated soft drinks producers in Southern Africa. Their portfolio consists of the recognisable brands Jive, Coo-ee and Reboost. BevCo also bottles and distributes PepsiCo-branded non-alcoholic beverages in South Africa and has five manufacturing facilities in the country, in addition to operations in Lesotho, Eswatini, Namibia, and Botswana.

“Having invested in 2017, The Rohatyn Group’s Africa Private Equity team together with our partners and the management team have built a focused non-alcoholic beverage platform. We executed our original investment thesis over a seven-year period and today the consolidated BevCo is in excess of three times the size and continues to grow its market share organically. VBL brings significant resources and expertise to invest in BevCo’s product offering and grow PepsiCo’s brands in Southern Africa, while expanding their presence on the continent,” says Glynn Potgieter, Managing Director at The Rohatyn Group.

There are always multiple challenges with cross-border transactions, in this instance including the requirement for compliance with both the Indian Stock Exchange and South African regulations. Regulation in India required a restructure of the BevCo group as well as the transfer of its debt facilities and subsequent deregistration/liquidation of more than ten entities within the group structure. This had implications on what would normally be a standard warranty and indemnity insurance policy. The transaction showcases RMB’s advisory capability in successfully navigating complex cross-border transactions and ability to access international buyers for high quality South African assets.

In addition to the corporate finance advisory role to BevCo, RMB’s South African and India teams assisted with refinancing the existing debt within BevCo as well as providing incremental acquisition finance for the transaction, in addition to facilitating the flows and foreign exchange conversion for the deal. This demonstrates RMB’s expertise and comprehensive solutions offering across the Indo-Africa corridor. With a footprint and expertise based both in South Africa and India, RMB can support clients on both sides of the corridor to enable seamless end-to-end transactions.

“The Indian market reacted extremely positively with VBL’s share price increasing in excess of 10% and reaching an all-time high on the day the transaction was announced. The transaction represents a significant investment and an important vote of confidence in South Africa by a large global player in the sector,” says Gareth Armstrong, Corporate Finance Executive at RMB.

Distributed by APO Group on behalf of Rand Merchant Bank.