London-listed Kenmare Resources plc, operator of the Moma titanium minerals mine in northern Mozambique, has secured a funding package to refinance a maturing revolving credit facility and a five-year term loan facility.

RMB, acting as the Initial Mandated Lead Arranger (IMLA) on the deal as well as one of the lending banks, worked with Kenmare to structure a new five-year US$200m RCF. The tailored facility allows Kenmare to meet their strategic objectives in the most efficient way possible, giving them the financial flexibility they need to position the company for future growth in this bespoke commodity sector.

Kenmare has a strong track record of successfully executing several growth and business improvement projects, having invested more than US$1.4bn into the Moma mine since inception. Their focus on environmental, social and governance (ESG) has resulted in more than 90% of the electricity they consume being derived from low-cost hydroelectric power, and in 2022, Kenmare was awarded the ESG Producer of the Year at the Mines&Money Outstanding Achievement Awards.

Having worked with Kenmare since 2019, RMB has developed a sound understanding of the company’s strategic priorities at both a corporate and project level, leading to a differentiated funding solution that allows the company to continue focussing on some of their core objectives. These include the ability to operate both sustainably and responsibly, ensuring a strong balance sheet while allocating capital efficiently and delivering value to shareholders, and maintaining long-life, low-cost production via the move of one of their processing plants to a new orebody that will underpin production sustainably for decades.

Kenmare continues to be the largest employer in the Nampula province and has contributed more than US$200m in taxes and royalties. Through the Kenmare Moma Development Association (KMAD), they have also implemented development programmes in the mine’s host communities, investing US$16m to date.

“RMB’s commitment to expanding the resources sector in Africa, combined with our extensive knowledge and experience in Mozambique, played a crucial role in successfully securing this deal.  This transaction highlights our capability to orchestrate syndicated deals across the African continent, with a specific focus on the mining sector. It represents the culmination of thorough diligence and unwavering dedication to understanding our clients’ unique requirements.” says Andre Lubbe, Resources Sector Focus Lead at RMB.

Distributed by APO Group on behalf of Rand Merchant Bank.

The Technical Committee of the African Development Bank (AfDB) Group (www.AfDB.org) met on 18 March 2024 in Abidjan and approved the new work programme for 2024. The committee, responsible for monitoring the work of the AfDB’s Urban and Municipal Development Fund (UMDF), allocated a total of US$4.5 million to support projects in 14 African municipalities and local authorities.

The first part of the programme, totalling some $500,000, will be centred on improving the quality of urban governance. The Fund will launch a capacity-building and consulting programme to improve municipal finances and solvency in six large pilot cities in Africa – Nairobi, Dakar, Abidjan, Addis Ababa, Kigali and Lagos. The aim is to maintain the support programme for municipalities and help them identify and access new sources of public and private finance.

The second part of the programme will target urban planning and will receive funding of $900,000. The money will be spent to extend the African Cities Programme to six new cities in addition to 13 already benefiting. This programme involves the design of effective urban action plans and identifying priority investment projects worthy of support from donors including the African Development Bank.

Finally, the Fund will release $2.8 million for the third part of the programme aimed at accelerating the upgrade of urban infrastructure across various fronts. The money will finance preliminary studies for projects (feasibility studies in some cases and detailed technical studies in others). Water-related projects will also play a key role in view of the urgent need to improve resilience of cities and their ability to adapt to climate change. Such projects include sewerage and water drainage in Maroua (Cameroon), sewerage networks in Accra (Ghana), drinking water treatment in the Cairo region (Egypt), coastal works in Nouakchott (Mauritania) and climate-resilient infrastructure planning in Cape Town (South Africa).

The Fund’s support programme for project preparation will also extend to public transport, financing studies to develop the bus network in Addis Ababa (Ethiopia) and railway services in Lagos (Nigeria).

“These projects have been selected because of their potential impact, their ability to change the daily lives of millions of African citizens living in urban areas, but also because of their inclusive dimension and the benefits they bring for combating and adapting to climate change,” said Mike Salawou, Director of the Infrastructure and Urban Development Department at the AfDB. Mr Salawou also chairs the Technical Committee.

Launched in 2019, the Urban and Municipal Development Fund acts as facilitator and accelerator of infrastructure projects, promoting a comprehensive approach that fosters synergies between sectors, building capacity of local stakeholders and encouraging dialogue with public and private donors.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact:
Alexis Adélé
Communications and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 37 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

In February this year the U.S. International Development Finance Corporation announced new financing in support of the Lobito Corridor – a transnational 1,300-km railway line linking Angola’s Port of Lobito with southern DRC and north-western Zambia. The U.S. and its partners – which include the European Commission, African Development Bank and Africa Finance Corporation – have already mobilized nearly $1 billion for the project, representing the largest single US and EU investment on the African continent in recent years.

The Lobito Corridor has been uniquely able to galvanize broad international support, primarily due to its alignment with the energy transition and economic ties to US and European markets. As a result, the project serves as a finance and development model for other large-scale African infrastructure projects seeking foreign investment and participation. The upcoming Invest in African Energy (IAE) forum in Paris will unpack this model, as it aims to connect Africa’s project pipeline with global investor interest. For Africa, infrastructure deals represent some of the most strategic transactions, able to trigger a “domino effect” on local job creation and the establishment of value-added industries.

Organized by Energy Capital&Power, IAE 2024 (https://apo-opa.co/49krKXM) is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 14-15, 2024 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.Invest-Africa-Energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

One of the unique selling points of the Lobito Corridor is its built-in demand from global markets. African infrastructure projects often encounter difficulty in reaching financial close, in part due to a lack of secure offtake agreements, guarantees and feasibility studies that help projects overcome associated risks. Both the US and EU have signed MOUs in support of the rail corridor – with a view to sourcing critical minerals to supply their own EV battery supply chains – as well as confirmed a joint commitment to supporting pre-feasibility studies for an extension of the corridor from eastern Angola to Zambia. Multinational commodity trader Trafigura and Canada’s Ivanhoe Mines have also signed deals to export their copper production to the DRC utilizing the Lobito rail route.

The Lobito Corridor also successfully leverages the strength of public-private partnerships (PPPs). In addition to mobilizing financing and distributing risk among multiple parties, PPPs garner formal government support, while capitalizing on free-market expertise required to develop the project from a technical standpoint. A consortium composed of Trafigura, Portugal’s Mota-Engil and Belgium’s Vecturis SA have been awarded the contract to manage railway services and support the logistics of the project. It is also a credit to the respective governments of Angola, DRC and Zambia for having the sufficient trade and regulatory frameworks to accommodate complex, cross-border and inter-governmental agreements. The establishment of a comprehensive framework, along with the provision of legal protections for investors, serve to minimize risk and drive projects forward.

Distributed by APO Group on behalf of Energy Capital&Power.

The African Development Bank (www.AfDB.org) and the International Organization for Migration (IOM) released a joint report designed to support practitioners and decision makers to turn migration into a force for development in Africa.

The report, Diaspora Engagement, Climate-Induced Migration and Skills Mobility: A Focus on Africa (https://apo-opa.co/3VE4Zd0) examines the impact of migration on human development and poverty reduction. It provides insights to leverage the potential of the African diaspora, build climate resilience, and harness skills mobility to drive Africa’s development trajectory.

Key findings of the report show that:

Diaspora engagement is key in mitigating the impact of the “brain drain” and facilitates the flow of skills and knowledge from different parts of the world to the African continent, and vice versa.
African diaspora communities are key in addressing climate-related issues ranging from sudden onset challenges to adaptation and disaster risk reduction when their technical expertise is leveraged, and skills mobility facilitated.
Partnerships and collaboration remain crucial to mainstream diaspora engagement into the policy and programmatic responses to climate change and skills mobility at the national, regional, and continental levels.

The findings are a result of a two-year long collaboration between both organizations, as well as members of the Multilateral Development Bank Platform on Economic Migration and Forced Displacement (EMFD).

An excerpt from the preface signed by Dr. Akinwumi A. Adesina, African Development Bank Group President and António Vitorino, former Director General, International Organization for Migration, notes: “The study meticulously illustrates that when well-managed, migration can be a powerful impetus for human development and poverty reduction. It can foster sustainable and equitable economies by introducing innovation, skills, knowledge, and remittances between the countries of origin and destination.”

Access the report here (https://apo-opa.co/4at1TN8).

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

For more information please contact:
African Development Bank:
Amba Mpoke-Bigg
Communication and External Relations Department
email: a.mpoke-bigg@afdb.org

Technical contact:
Linguère Mbaye
email: l.mbaye@afdb.org

IOM (Dakar):
Naomi Shiferaw
email: snaomi@iom.int