The insurance business of South African firm cl, Constantia Risk and Insurance Holdings is being bought over by Namibia’s financial services group Trustco for $135m.The sale to Trustco’s subsidiary Legal Shield Holdings (LSH), is expected to get regulatory approval, by the end of March 2020. Through LSH,Trustco aims to expand its insurance operation regionally. The deal includes16.1% stake for Conduit Capital in LSH .
Conduit Capital is listed in Johannesburg Stock Exchange. The bouquet of services offered by Conduit Capital includes a range of insurance and risk management solutions in South Africa, covering areas such as health and life insurance. Recently it announced its decision to sell all the shares it holds in its subsidiaries Constantia and Conduit Ventures. The decision was taken according to the company sources, to boost its balance sheet.
Tax disputes deter foreign investors in Africa’s oil and gas sector- Africa’s Energy Outlook 2020(Pan Africa, Global ties)
Africa’ has proven reserves of approximately 125 billion barrels of oil constituting 7.3 per cent of the global reserves. Proven gas reserves stand at 509.6 trillion cubic feet (tcf) accounting for 7.2 per cent of global reserves. Tax disputes and disagreements over field development plan frequently affect commercial production.
According to Africa’s Energy Outlook (2020) prepared by Africa Energy Chamber, foreign investors in Africa’s oil and gas sector are concerned about the uncertainty surrounding the taxation measures that African governments impose on the oil and gas sector. The energy lobby group, says that, the unpredictability about the tax environment, can deter the potential investors. Chinese oil firms reportedly are looking at an investment of $15 billion in the sector in the next four years. The report states that tens of billions of dollars’ worth of projects are being delayed due to uncertain environments. Citing the example of Uganda, that discovered crude oil reserves estimated at six billion barrels in the Albertine rift basin in 2006, it points out lack of regional co-operation combined with President Yoweri Museveni’s disputes with international oil companies, slowed the development of Lake Albert. From mid-2014 and 2017, several oil and gas projects were either suspended or cancelled due to tough economic conditions, political instability, regulatory uncertainty and inadequate infrastructure to evacuate products to market. The delay had a severe impact on oil economies including Nigeria, Angola and the Republic of the Congo, which stalled economic growth and tightening government revenues
China accounts for almost 42 per cent of sub-Saharan Africa’s crude exports by value, with Angola topping the list. Chinese firms are developing two pipelines that will enable Niger and Ethiopia to become exporters of crude oil and natural gas respectively. The 2,500km of pipeline is expected to provide export routes via Benin (for Niger) and Djibouti (for Ethiopia).
