Mergers to cocoa: Africa’s top business news

STORY: Here are five business stories making headlines in sub-Saharan Africa this week.

South Africa’s Gold Fields is set to become one of the world’s four biggest gold miners, after agreeing to acquire Canada-based Yamana Gold in a $6.7 billion all-share deal.

However, shares in Gold Fields fell 20% on Tuesday (May 31), with investors voicing concerns about dilution on a call with the CEOs of the two companies.

Also in mergers, West Africa-focused Tullow Oil will acquire Capricorn Energy in an all-stock deal worth around $827m.

London-listed Tullow’s flagship offshore oilfields in Ghana will make up the biggest share of reserves and production for the new group.

It’s expected to have an output of around 100,000 barrels of oil equivalent per day with production also in Egypt, Gabon and Ivory Coast.

China’s President Xi Jinping has said he is ready to strengthen and broaden bilateral ties with Zambia, Chinese state television reported on Tuesday.

In a call with his counterpart Hakainde Hichilema, Xi said China would promote the entry of more Zambian products into the Chinese market, especially high-quality agricultural goods.

Kenya’s central bank raised its main lending rate on Monday (May 30) from 7% to 7.5%, its first hike in nearly seven years.

The bank said inflation risks were elevated because of global commodity prices and supply chain disruptions.

And finally the International Cocoa Organization has forecast a 174,000 tonne global cocoa deficit in the current 2021/22 season.

The estimate was driven by cuts for Ghana and Nigeria, where the organization said adverse weather conditions and diseases are negatively affecting production.