Banking & Financelegal & regulatory updates

Jogmec Invests N$565 Million in Namibia's Rare Earths Project

Jogmec invests up to N$565 million in its rare earths project in Namibia's Kunene region. The Lofdal rare earth development project was launched by Jogmec and NCMI in 2020.

Seplat: Sells 10% NNPC Joint Venture Stake for $281.6m

Seplat Energy agrees to sell 10% stake in JV with NNPC Limited for $281.6 million. Sale is part of Seplat's strategy to optimize asset portfolio and focus on high-growth opportunities.

Nigeria NMDPRA Seeks West Africa Petroleum Products Pricing Benchmark

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called on petroleum regulators across West Africa to collaborate on establishing a regional pricing benchmark for refined petroleum products. This move is aimed at strengthening market confidence, promoting cross-border trade, and attracting investment into the downstream sector. A transparent West African pricing mechanism would be significant for practitioners in the energy sector, as it would provide clarity on pricing structures and enable businesses to make informed decisions. The current lack of a unified pricing benchmark has led to price volatility, making it challenging for companies to operate effectively across borders. The NMDPRA's call is rooted in the Nigerian Oil and Gas Industry Content Development Act 2010, which emphasizes the need for collaboration among stakeholders in the oil and gas industry. The authority's efforts are also aligned with the Economic Community of West African States (ECOWAS) vision to create a single market for goods and services. The key parties involved in this development include the NMDPRA, petroleum regulators across West Africa, and energy companies operating in the region. Practitioners should monitor the progress of this initiative and be prepared to adapt their business strategies accordingly.

Nigerian SEC Launches Electronic Registration for Capital Market Operators

FRA Authorises Syndicated Mortgage Financing to Support High-Value Property Purchases

The Financial Regulatory Authority (FRA), chaired by Islam Azzam, has authorised mortgage finance companies to provide financing through a syndicated financing model, allowing multiple lenders to jointly finance customers purchasing high-value property units, provided each participating company complies independently with all laws and regulations governing mortgage finance activities. The decision was communicated by Rehab Taha, the FRA's vice chairman. This development is significant for practitioners as it provides an additional financing option for high-end property purchases in Egypt. Syndicated mortgage financing can help to increase liquidity in the market and provide more options for borrowers who may not have been able to secure financing through traditional means. However, it also raises questions about the potential risks associated with this type of financing, such as increased complexity and potential conflicts of interest. The FRA's decision is based on existing regulations governing mortgage finance activities in Egypt. The Mortgage Finance Act 2010 provides a framework for the regulation of mortgage finance companies and sets out requirements for their operations. The FRA has likely taken into account these regulations when authorizing syndicated mortgage financing, but practitioners should be aware of any potential implications for borrowers or lenders. Practitioners should monitor developments in this area to stay informed about any changes to regulations or guidelines governing mortgage finance activities in Egypt.

US Bans China-Made Humanoid Robots Amid National Security Risks

Kenya Customs Benchmark Value Delayed After Industry Pressure

Standard Bank RMB Clearing Hub Approval Sparks Kenya-China Trade Boom

The People's Bank of China has approved Standard Bank Group and the Industrial and Commercial Bank of China (ICBC) to operate Africa's first Renminbi (RMB) clearing hub, a move expected to make trade and payments between China and African countries faster and cheaper. This development is significant for practitioners as it will provide businesses with transparent, efficient, and cost-effective payment solutions between China and Africa. The new arrangement will support trade and investment between the world's most dynamic economies, which could lead to increased economic activity in the region. For Kenya, this could lower transaction costs for businesses importing goods from China and exporters selling products such as tea, coffee, and avocados to the Chinese market. The approval by the People's Bank of China is a key development that will facilitate cross-border trade between Africa and China. The hub will serve 19 African markets where Standard Bank operates, including Kenya. This move is in line with China's Belt and Road Initiative (BRI), which aims to enhance economic cooperation and connectivity between China and other countries along the route. The RMB clearing hub will allow businesses to settle transactions directly in Chinese yuan instead of routing payments through the US dollar or other currencies. The key parties involved in this development are Standard Bank Group, the Industrial and Commercial Bank of China (ICBC), and the People's Bank of China. For practitioners, it is essential to monitor this development as it will have a significant impact on trade and investment between Africa and China. Businesses should be aware of the new payment solutions available through the RMB clearing hub and consider utilizing them to reduce transaction costs and improve efficiency. Practitioners should take note that this development could lead to increased economic activity in the region, which may require adjustments to existing laws and regulations. Attorneys should monitor any changes to the regulatory environment and be prepared to advise clients on how to navigate the new payment solutions available through the RMB clearing hub.

Kenya debt servicing absorbs 71% of government revenue, Controller of Budget warns

Kenya Trapped in Borrowing Cycle As Debt Hits Billions of Dollars - Controller of Budget, AllAfrica Kenya. The Controller of Budget, Margaret Nyakang'o, has revealed that Kenya's public debt has climbed to Sh12.82 trillion, with loan repayments consuming 71 per cent of all government revenue, leaving just 29 per cent for essential services and development projects. This alarming trend has significant implications for the country's fiscal sustainability and ability to provide basic services to its citizens. The mounting debt burden has severely constrained the government's fiscal space, making it increasingly difficult to finance essential services without resorting to additional borrowing. The Kenyan government's public debt is governed by the Public Finance Management Act (PFMA) 2012, which requires the Controller of Budget to provide regular reports on the country's financial performance. The PFMA also sets out guidelines for fiscal discipline and prudent management of public finances. In addition, the National Treasury is responsible for managing the country's debt portfolio and ensuring that borrowing is done in a sustainable manner. The key parties involved in this matter are the Controller of Budget, Margaret Nyakang'o, the National Assembly's Public Petitions Committee, and the Kenyan government as a whole. Practitioners should monitor the government's response to these concerns and the measures it takes to address the debt burden. Attorneys may also need to advise clients on the implications of this trend for their businesses or investments in Kenya.