CAIRO (Reuters) – Orange Egypt said on Thursday it has decided not to apply for a fourth-generation license offered by the Egyptian telecom regulator.

“Orange Egypt for Telecommunications has decided not to apply for the license to offer 4G in light of the current terms and conditions,” the company said in a statement via the stock exchange.

Egypt gave companies that already operate in the country priority in obtaining 4G licenses but has said it will launch an international tender should any of them decline the offer.

(Reporting by Asma Alsharif; Editing by Susan Fenton)

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By George Obulutsa

NAIROBI (Reuters) – Uganda plans to spend at least $2 billion in the next five years to connect more people to its electricity grid and raise connection rates, a senior executive at sole power distributor Umeme Ltd said on Thursday.

Ugandan officials say they want to boost electricity supply rapidly to power an industrialisation drive. In recent years they have cut subsidies for consumers and introduced a tariff adjustment mechanism.

The country said in 2015 it planned to increase its electricity generating capacity to at least 1500 megawatts (MW) over the next three years from 850 MW.

Sam Zimbe, deputy managing director of Umeme, said to go hand in hand with this, the country aimed to increase the number of electricity connections to 3 million in the next four years from about 900,000 at present.

“We intend to spend at least $800 million just on that activity alone, constructing low voltage lines, and looking at last-mile connections,” Zimbe told an East African power industry conference.

“Right now we have started the programme. In the first two years for that matter, we plan to spend at least $400 million, half that amount,” he told Reuters after his presentation.

He said the increased connections would raise the access rate to 40 percent of the population from 20 percent at present.

Zimbe said Uganda planned to spend another $1.2 billion over the next five years to improve other infrastructure on the grid.

“That is for the backbone infrastructure, in addition to the access programmes. The backbone infrastructure entails new substations, upgrades of the medium voltage lines,” he said.

Uganda’s peak power demand is about 550 MW but is growing 10-12 percent annually.

Uganda, which expects to start producing oil in the next four years, has an economic growth forecast of 5.5 percent for the fiscal year that started July 1, and forecasts it to rise to 6 to 7 percent in the 2017/18 fiscal year.

(Reporting by George Obulutsa; Editing by Elias Biryabarema and Alexander Smith)

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ACCRA (Reuters) – Ghana could become the fourth biggest oil producer in sub-Saharan Africa by 2020 once two new offshore fields come on stream, to push total output above 240,000 barrels per day (bpd), pan-African bank Ecobank said on Wednesday.

The West African country produces around 103,000 bpd ranking it ninth, far behind leaders Nigeria and Angola, which produce an average of 1.867 million bpd and 1.754 million bpd respectively, said the Ecobank research report.

Ghana’s Tweneboa-Enyenra-Ntomme (TEN) field came on stream in August and is expected to increase output to a peak of around 80,000 bpd.

The Jubilee field, which started producing oil in 2010 and is operated by British oil company Tullow, could bounce back to production of around 115,000 bpd once it solves technical problems with its production vessel. [nL8N1A14BQ]

At the same time, the Sankofa field operated by Italian company ENI is due to open in August 2017 and should produce around 30,000 bpd, while U.S. independent Kosmos Energy plans to connect the Mahogany-Teak-Akasa (MTA) field to the Jubilee oil production ship.

“Based on existing fields and field development plans Ghana crude oil output is estimated to be over 240,000 bpd by 2019. This could potentially make Ghana the fourth largest oil producer in Sub Saharan Africa by 2020,” the report said.

Production costs for Ghana’s oil projects, which are all in deep water, mean that the crude remains viable if global prices fall to $40 per barrel, allowing it to remain attractive to investors in the event of price fluctuations, it said.

Gas from TEN, Sankofa and MTA could eliminate the need for Ghana to import gas from Nigeria through the West African Gas Pipeline Company, it said.

(Writing by Matthew Mpoke Bigg; Editing by Toby Chopra)

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NEW YORK (Reuters) – More than $1 billion in debt and financing commitments from U.S. agencies and private investors is set to be announced on Wednesday for U.S. President Barack Obama’s signature Africa energy initiative, Power Africa, a top USAID official said.

The latest deals were finalized around a U.S.-Africa business forum on the sidelines of annual U.N. meetings in New York this week, USAID chief Gayle Smith said in an interview with Reuters.

Obama launched the initiative in 2013 with an initial investment of $7 billion, which aims to install 10,000 megawatts of new generation capacity, connect 20 million new customers, and improve electric reliability across the Sub-Saharan Africa.

The program hoped to attract private capital into energy projects in a region where regulatory hurdles and lack of risk instruments have often kept Western investors away.

Smith said the deals covered funding for regional infrastructure facilities, risk insurance and renewable power projects in Kenya, Nigeria, Senegal, Sierra Leone, South Africa and Tanzania.

To date, Power Africa has mobilized more than $52 billion in additional commitments, of which $40 billion is from private companies, according to the United States Agency for International Development (USAID), which coordinates the program.

Power Africa is tracking more than 500 deals, and 40 transaction advisers working across Africa have identified 60,000 megawatts of potential deals, Smith said.

While the initiative has been criticized for its slow start, she said projects were starting to come online.

“We’re starting to see some of these projects go online and actually start the generation,” Smith said.

“We’re seeing an uptick in commitments, which is because confidence of the market is building and they’re seeing you can actually get these transactions done.”

Smith said the passing this year of the Electrify Africa Act, which unanimously passed the House of Representatives and Senate, and aims to build on Power Africa, sent a “a signal that this is something the United States will continue to do” even as the Obama administration winds down.

The legislation is largely symbolic and declares it the policy of the United States to encourage electrification in Africa and instructs the U.S. Treasury and other agencies to make electrification funding a priority.

(Reporting by Lesley Wroughton; Editing by Robert Birsel)

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By Libby George

ABUJA (Reuters) – Nigeria must consider selling stakes in joint ventures with oil majors and other assets as talks to borrow abroad have not succeeded yet and would in any case not generate enough funds to stimulate economic recovery, the leader of the Senate said.

Senate President Bukola Saraki, the third most powerful official in Africa’s biggest economy, also said the oil producer might struggle with recession for up to nine months or even longer unless it got serious about attracting investors.

The government said this month it had approved loans from China, the World Bank, Japan and the African Development Bank, but Saraki, whose relations with the president have cooled since last year, said such talks were still ongoing with no deals yet.

“There is a big hole now in the fiscal deficit because that funding is not coming through. So we’ve got to look for alternative ways to fund that,” Saraki said in a joint interview with the Financial Times on Monday when asked about the loans.

The government has said it plans to borrow as much as $10 billion, with half of that coming from foreign sources, including a planned $1 billion Eurobond issue, to fund a budget deficit of 2.2 trillion naira ($7.21 billion) and boost an economy hammered by low oil prices and hard currency shortages.

Saraki said that even if the loan talks succeeded, the amount raised would not be enough to plug the hole in public finances. “My take is that even if it does come through, it’s money too little, too late,” he said, referring to the loan talks.

He said Nigeria needed to sell stakes in oil and gas joint ventures, oil exploration contracts and refineries to raise funds. “In my view, I really can’t see any other pathway to recovery. We need investors, we need to raise capital.”

Such an asset sale would be necessary even if global crude prices recovered to $70 a barrel and Nigeria managed to restore oil production to 2 million barrels per day (bpd) with an end to militant attacks in the Niger Delta oil hub, Saraki said. Officials say the attacks have reduced output by 700,000 bpd.

Saraki said Nigeria could overcome recession in six to nine months if swift action was taken — a more downcast view than that of the government, which has forecast a quick recovery.

Central bank governor Godwin Emefiele was due to hold a news conference at around 1315 GMT after a meeting of the rate-setting Monetary Policy Committee. The finance minister said on Monday the central bank should lower interest rates so that the government can borrow domestically to boost the economy.

Economists polled by Reuters last week predicted that the central bank would keep its key interest rate at 14 percent and reiterate its focus on resuscitating growth.

The government has said it is considering asset sales, but has given no details.

“If we do things right, the confidence will come in,” Saraki said. “If we carry on waiting for government revenues to go up, if we don’t do anything seen as thinking out of the box” the recession could drag on longer.

Nigeria’s 2016 budget was the largest in the nation’s history, but the oil price drop and Delta attacks have left the government scrambling for funds.

Saraki is from the same ruling All Progressives Congress (APC) as President Muhammadu Buhari, who was elected in March 2015 on a promise to end graft and mismanagement in the West African nation.

But relations between the two have been strained since Saraki ran unopposed for the position of Senate president last year, mainly with the backing of the opposition. He was not the APC’s preferred candidate.

(1 = 305.0000 naira)

(Reporting by Libby George; Editing by Ulf Laessing and Philippa Fletcher)

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