Many businesses have been facing new challenges as a result of the COVID-19 Pandemic and related restrictions on ordinary life and commerce. While many businesses have enjoyed new opportunities, the net impact on most South African companies has been negative and many businesses have found themselves in financial distress. Verdant Capital is pleased to announce that it has partnered with the COBRA initiative – which stands for COVID Business Rescue Assistance. The COBRA initiative was established to provide assistance from professional advisors to South African businesses in need. Verdant Capital offers services both in respect of M&A advisory and restructuring […]
Africa’s second-largest copper exporter was already burdened by high fiscal deficits and foreign debts heading into the crisis; Zambia’s budget balance was approx. a deficit of 17.6% of GDP with foreign exchange reserves representing import cover of only eleven weeks (Source: Fitch Solutions, June 2020). The COVID-19 pandemic has further constrained the sovereign’s external liquidity. Reflecting this risk, both Fitch and Moody’s downgraded Zambia’s long-term issuer ratings in April (to CC and Ca, respectively), citing the increased likelihood of a default event. Since then, the country has hired Lazard’s as advisor on a formal ‘liability management’ mandate in negotiations with […]
Late last year, Ivorian President Alassane Ouattara and his French counterpart Emmanuel Macron jointly announced plans for the West African CFA Franc (the “XOF”) to be replaced by a new regional currency, the “Eco”, from mid-2020, reversing the decades-long currency regime in West Africa. The XOF is pegged to the EUR at 1 EUR to 655.957 CFA Francs. The critical tenant of the currency is that the French Treasury guarantees convertibility at this fixed-rate, in exchange for UEMOA-member countries depositing 50% of their respective reserves with the French Treasury. The timing of the December announcement was viewed with some surprise, […]
