Citigroup Seeks Namibia, Benin Business as Investment Jumps

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(Bloomberg) — Citigroup Inc. is in talks with African governments including Namibia and Benin to boost business as investment flows into the countries.

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That’s according to Grant Carson, who heads a unit that oversees operations in 64 countries where the US bank doesn’t have a physical presence. About a third of those nations are in Africa. 

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Some African nations are attracting investments from the Middle East even as US President Donald Trump’s trade war worries investors. 

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Namibia, the world’s third-largest uranium supplier, is on the cusp of an oil boom, which is luring companies including Galp Energia SGPS SA and Chevron Corp. Benin sold Africa’s first dollar bond this year and is selling state assets.

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There’s “renewed interest in Africa, although it remains to be seen what happens with the tariff environment,” Carson said. “We are seeing investment growing in economies such as Namibia and Benin, and we are talking to them mostly at the government level.”

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There’s been a rush of Middle East deal making into Africa — particularly from the United Arab Emirates and Saudi Arabia — into mining, renewable energy and agriculture. 

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Saudi companies including ACWA Power and ports operator Red Sea Gateway Terminal, both backed by the kingdom’s $925 billion sovereign wealth fund, have invested in South Africa or are bidding for assets in the country. Thanks to the Public Investment Fund’s 44% stake in ACWA, the kingdom is now the largest investor in South Africa’s renewable-power sector, according to Standard Bank Group Ltd.

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A number of African countries are also looking at restructuring debt providing banks with business opportunities. Citigroup has helped Benin arrange the sale of eurobonds. With the US Export-Import Bank, Citigroup further arranged financing for a national cyber security project in the West African country.

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The lender is also in discussions with Angola to help the oil-rich nation come up with a plan for its state-owned companies, Carson said. 

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Other recent deals for the so-called hub-managed countries that Carson leads includes aircraft financing in Ethiopia, and a revolving loan facility for a corporate in Angola.

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Under Citigroup Chief Executive Officer Jane Fraser, the New York-based bank started a reorganization that has seen it simplify its structure. 

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Carson first joined the bank 26-years ago in South Africa, and has held leadership positions in Europe, Middle East, Africa and Asia. His current role falls under the international business umbrella, he said.

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