Finance

LONDON (Capital Markets in Africa) — The coronavirus is muddying the outlook for London’s second-biggest airport. Richard Branson’s Virgin Atlantic Airways Ltd. became the latest carrier to back away from London Gatwick, saying Tuesday it will shutter its operation at least temporarily to focus on the much larger Heathrow. With arch-rival, British Airways reportedly looking to do the same, and Gatwick’s third-largest tenant, Norwegian Air Shuttle ASA, retrenching to survive the winter, the south London hub is…

LAGOS (Capital Markets in Africa) — Nigeria will seek to delay payments of some government debt until 2021 when it expects state revenue to recover, Finance Minister Zainab Ahmed said. A deferral wouldn’t be debt forgiveness, but rather a rescheduling of obligations to free up fiscal space to enable the government to address the coronavirus pandemic, Ahmed told a virtual briefing Tuesday. “When revenues improve, and we hope by 2021 they should improve, we will be able…

HARARE (Capital Markets in Africa) — Zimbabwe will get $7 million from the World Bank to fight the coronavirus pandemic despite being in arrears with the Washington-based lender. The lender will mobilize $5 million from its Global Financing Facility Trust Fund to support the nation’s health response to the outbreak and redirect about $2 million from its ongoing Zimbabwe Idai Recovery Project to support affected communities, a World Bank spokesperson said in an emailed response…

ADDIS ABABA (Capital Markets in Africa) — Ethiopian Airlines Group is prepared to come to the rescue of stricken carriers around Africa, even as the continent’s biggest airline deals with its own mounting losses and grounded planes due to the Covid-19 pandemic. Talks are underway with the government of Mauritius about the revival of the island nation’s state carrier, which was put into administration last month, Ethiopian Chief Executive Officer Tewolde GebreMariam said in an interview on Tuesday. And…

KAMPALA (Capital Markets in Africa) — Uganda plans to borrow 330 million euros ($361 million) from Spain’s Corporate Internationalisation Fund to refurbish its colonial-era meter-gauge railway, the Ministry of Finance said. At least 24.6 million euros will fund the first rehabilitation phase, the ministry said in a statement without providing details. The government of East Africa’s third-biggest economy received financing proposals from the Spanish government and other European Club Association members, it said. Uganda wants…

JOHANNESBURG (Capital Markets in Africa) — South African President Cyril Ramaphosa has won praise for his response to the coronavirus outbreak. Now, he’s risking a public backlash after members of his cabinet reversed some of his measures and made racially charged statements. South Africa identified its first case of the virus on March 5 and imposed a stringent lockdown three weeks later, shutting schools and businesses and confining everyone but essential workers to their homes….

LAGOS (Capital Markets in Africa) — Private creditors have articulated the problems that will have to be overcome if a plan to ease the debt burden of the world’s poorest nations as they counter the coronavirus pandemic is to get their support. Legal and financial limitations will probably force investors to waive debt payments case by case, the Washington-based Institute of International Finance said in a letter to the leaders of the International Monetary Fund, the World…