Nordic investors seek to invest into smart city projects across West Africa’s largest commercial city

The Nordic Nigeria Connect just closed in Lagos this week after welcoming delegations of investors from Norway, Denmark, Finland and Sweden. The conference was organized by Nordic countries to present several opportunities across waste and wastewater management, green energy and green transportation solutions across the State of Lagos.

More importantly, the week highlighted Lagos’ leadership position in Nigeria when it comes to embracing sustainability. The State is in fact preparing a historic green bond issuance of NGN 25bn ($60m) under the Nigerian Green Bond Market Development Programme (NGBMDP).

In order to modernize Lagos’ infrastructure, manage its waste and provide energy to its booming urban population, the state administration is looking at capital and technology from Europe. “Lagos generates on average 13,000 metric tonnes of waste day,” declared Governor Babajide Sanwo-Olu at the opening of the conference this week. “This challenge represents a significant opportunity for investors seeking to turn waste into wealth such as energy or fertilizers”

Negotiations around new deals on energy supply were also high on the agenda, especially as Lagos seeks to become more independent from the national grid. Earlier this year, the state made a case for a new energy policy that would see it develop and grow its own electricity market.

Finally, sustainable transportation solutions were advanced as a way to support modern mobility systems across Lagos. These include both the expansion of the state’s Lagos Rail Mass Transit System but also the conversion of its public buses into compressed natural gas (CNG).

Deal making and networking was notably supported throughout the week by the Nigerian Norwegian Chamber of Commerce, a not-for-profit bilateral institution established in 2015 to support business and commercial ties between Norway and Nigeria.

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Vitol to acquire Vivo Energy’s remaining shares for approximately $2.3bn

Vivo Energy has announced it has reached an agreement on the terms of a recommended cash offer under which Vitol will be acquiring the entire issued and to be issued share capital of Vivo. Vitol will only be acquiring the shares it does not already own in Vivo Energy, via a BidCo, a company indirectly owned by Vitol Investment Partnership II Ltd. The total cash value of the deal is valued at $2.3bn. In December 2020, Vivo Energy’s key shareholders included Vitol (36.1%), Helios Investment Partners (27.23%) and Petronas Marketing International (3.93%). The announcement follows several attempts by the Vitol Group to acquire Helios Investment Partners’ shares in Vivo Energy. “Following a series of negotiations, BidCo and Helios agreed a price at which both parties would be willing to transact at a purchase price of US$1.79 per Vivo Share,” Vivo Energy said in a statement. Both companies were partners and founding shareholders of Vivo Energy, a company born of Shell’s divestment from all its African fuel retailing business in 2011. Vivo eventually completed an initial public offering in May 2018, pursuant to which its shares were admitted to trading on the Main Market of the London Stock Exchange and admitted to listing on the Official List, with a secondary listing on the Main Board of the JSE.

Berbera International Airport officially opens after successful renovation by the UAE

The Berbera International Airport has officially opened its gates on November 20th. First built in the 1970s by the Soviet Union, the airport was in dire need of renovation and new equipment. While the airport got a new terminal in 2015, its redevelopment and modernization really started in 2020 when the Berbera International Airport Company (BIAC) took over the facility. The renovation works were carried out by Dubai-based company Transport Infrastructure Services Limited (TISL). The United Arab Emirates (UAE) had previously announced its plans to restore the Berbera Airport in 2019 after a six-day visit by Somaliland president Musa Bihi to the United Arab Emirates. Ethiopian Airlines will start scheduled flights at Berbera International Airport every Tuesday, Thursday and Saturday as of December 2nd this year. The UAE remain Somaliland’s biggest investment partner and are also invested in the development of the Berbera Port to turn the city into a gateway to Somaliland. Last month, DP World partnered with the UK’s CDC Group to support the modernisation and expansion of ports and inland logistics across Africa, starting in the ports of Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland).