Clyde & Co / East African Investor: April 2018 Update

Author:Mr Michael Strain and James Pius
Profession:Clyde & Co
 
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Clyde & Co has the largest presence of any international law firm in East Africa. From our hub in Dar es Salaam, Tanzania, we act as international counsel on transactions across the East African region. Our team has the ability to advise across the full spectrum of corporate transactions, including cross border M&A and private equity investments and exits.

Key recent developments in East Africa:

Ethiopia

Ethiopia signs USD 600M loan and grant deal with World Bank

The World Bank has agreed to loan and grant USD 600 million to Ethiopia to pay for roads and other infrastructure in urban areas.

The Washington-based bank said the funds would "help strengthen the capacity and performance of local urban governments, expand sustainable urban infrastructure and services, as well as promote local economic development."

Earlier this month, the World Bank also approved a USD 375 million loan to Ethiopia to fund a national electrification project.

New study estimates 10,000 MW geothermal potential in Ethiopia

The Ethiopian Government announced the results of 18 months of research and exploration by the Ethiopian Geological Survey with partners.

23 areas have been identified with geothermal energy development potential in the Ethiopian Rift Valley Zone which correspond to a combined geothermal power generation capacity potential of over 10,000 MW.

Development of geothermal projects is already under way in Aluto Langano, which is described to have a capacity potential of 80 MW. Two new wells have been drilled to a depth of 1,952 and 1,921 meters.

There are also preparations under way for a 100 MW project in Lalo Meda Tendaho of Afar state. Drilling could start in the next two months.

The government have confirmed that they would welcome private investors to invest into geothermal development in Ethiopia.

Two licenses have already been granted for geothermal development in two of the 23 areas identified in the study.

Priorities and main focus are given to development in areas with multi-infrastructure access with high energy potential.

The Rift Valley has still more geothermal energy potential and research continues on other areas in the Rift area.

Ethiopia to develop nuclear power

Ethiopia recently signed an agreement with Russia to set up nuclear technology to help generate power.

Currently, the agreement includes a plan to redevelop the former Soviet-built nuclear research centre in Ethiopia and once completed, the nuclear power station will generate...

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