Energy Finance

Sonangol posts $4bn loss for 2020

Angola's national oil company is planning an IPO before 2025.

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Angola’s national oil company Sonangol has posted a net loss of Kz 2,383,978,740,444, or the equivalent of $4.1bn for 2020. The crash of oil prices last year along with Sonangol’s impairments were the major reasons behind losses last year.

The company continues to be involved in a major restructuring and divestment effort in order to rationalize its operational footprint and prepare for an IPO before 2025.

Earlier this year, Sonangol notably launched its Partial Divestment Process (“Processo de Alienação Parcial”) to generate cash for the state coffers by divesting stakes in some of Angola’s

key producing offshore blocks along with producing licenses in shallow water and offshore exploration zones.

Deals on offer include up to 8.28% in Block 18, up to 10% in Block 15/06 and Block 31, 15 to 20% in Block 3/05 and Block 4/05, 30 to 65% in Block 5/06 and 30 to 70% in Block 23 and Block 27. Supported by the recovery in oil prices, this divestment exercise has generated significant interest amongst E&P players: while proposals were to be submitted by August 6th, Sonangol had to extend the deadline to access the data room until August 20th and extended the submission deadline to September 20th.

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Flutterwave and MTN forge new mobile money partnership across Africa

MTN and Flutterwave have announced a mobile money partnership that will allow businesses integrating Flutterwave in Cameroon, Côte d’Ivoire, Rwanda, Uganda and Zambia to receive payments via MTN Mobile Money (MoMo).  MTN MoMo is a fintech platform providing consumers and businesses with an electronic wallet, enabling electronic transfers and payments as well as access to digital and financial services. At the end of June 2021, it had 48.9 million active users and 581,514 merchants. MoMo enables businesses to accept and make payments within the mobile money ecosystem. This new partnership will enable Flutterwave to offer MTN Mobile Money as a payment method to its business customers. In recent years, Africa has witnessed an explosion in mobile penetration as smartphone adoption has risen rapidly. According to the GSMA, this year Africa will hit the half a billion mark of unique mobile subscribers and the continent will reach 50% subscriber penetration by 2025. Sub-Saharan Africa alone is responsible for more than 45% of the world’s mobile money accounts with the number of account holders exceeding half a billion by 2020, as shared on Statista. Through this partnership, MTN and Flutterwave will positively contribute to this trend by increasing mobile money usage and penetration in Africa to improve local economies and livelihoods as well as create opportunities for individuals and businesses across the continent. As we progress on our journey to becoming the largest fintech platform in Africa, we will empower millions of businesses to embrace e-commerce in our markets to accept digital payments from MoMo consumers. We believe this is an enabler to accelerating digitized payments in Africa. Serigne Dioum, Chief Digital and Fintech Officer, MTN Group The new partnership will further expand on Flutterwave’s previous collaboration with MTN, beyond Uganda and Rwanda – with the potential of deepening adoption of digital payments and e-commerce in Africa, a sector expected to reach $29 billion by 2022, according to Statista. 

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