June 2, 2023/United Capital
Anglophone West Africa
Nigeria
- Nigeria’s tax-to- GDP ratio rises to 10.86% – FIRS
Nigeria’s Federal Inland Revenue Service (FIRS) revealed that as of the end of 2021, Nigeria’s tax-to-GDP ratio grew to 10.86% from 6%, accounting for tax revenues from other government agencies apart from the FIRS.
https://nairametrics.com/2023/05/31/nigerias-tax-to-gdp-ratio-rises-to-10-86-firs/
- Nigeria- Indonesia trade rises to $4.7 billion – NICCI
Trade between Nigeria and Indonesia has exceeded expectations, reaching $4.7 billion, surpassing the initial target of $4 billion. The President of the Nigerian-Indonesian Chamber of Commerce and Industry (NICCI), Mr Ishmael Balogun, disclosed.
https://nairametrics.com/2023/06/01/nigeria-indonesia-trade-rises-to-4-7-billion-nicci/
- Savannah, AMOCON sign new gas deal
Savannah Energy PLC has announced that its 80 per cent indirectly owned subsidiary, Accugas Limited, has entered into a Natural Gas Sales and Purchase Agreement with Amalgamated Oil Company Nigeria Limited for gas produced in the OML 156 sole risk petroleum lease area for onward sale to its customers.
https://punchng.com/savannah-amocon-sign-new-gas-deal/
- CBN’s multiple exchange rate leads to lower economic growth – World Bank
The World Bank has averred that the current multiple exchange rate system operated by the CBN leads to lower economic growth, is related to high inflation, and discourages foreign direct investment
- Nigeria’s Senate approves bill to raise government borrowing from the central bank.
Nigeria’s Senate amended a law on Saturday to allow the federal government to borrow more money from the central bank, just days before incoming President Bola Tinubu takes office.
- Nigeria triples petrol prices after the president says to scrap subsidy.
Nigeria’s state oil firm NNPC Ltd on Wednesday hiked petrol prices to as high as N557.0 ($1.21) per litre from N189.0, days after new President Bola Tinubu said fuel subsidies would be scrapped.
- Nigeria records over 60% increase in LPG prices in 2022 – AfDB.
Nigeria experienced a 60% increase in liquefied petroleum gas (LPG) prices in 2022, according to the African Development Bank (AfDB). The lack of infrastructure and reliance on imports contribute to Nigeria’s high LPG prices, hindering progress in achieving energy access and security in the country.
https://nairametrics.com/2023/05/31/nigeria-records-over-60-increase-in-lpg-prices-in-2022-afdb/
- Tinubu inherits over N16.0tn uncompleted projects.
The new President of Nigeria, Bola Tinubu, has officially inherited over N16.29tn uncompleted projects from his predecessor, Muhammadu Buhari. The projects were identified through the national monitoring and evaluation platform, EYEMARK, which Buhari launched in Dec-2022.
https://punchng.com/tinubu-inherits-over-n16tn-uncompleted-projects/
Ghana
- Utilities Revenue Mobilisation – PURC Facilitates Collection of Gh¢39.4 Million
The Public Utilities Regulatory Commission (PURC) says it has facilitated the recovery of GH¢39.4 million in 2022 as revenue for two utility providers from outstanding bills owed by consumers.
https://allafrica.com/stories/202305310256.html
- Government Targets Two Million International Tourist Arrivals By 2024
President Nana Addo Dankwa Akufo-Addo has tasked the Ministry of Tourism, Arts and Culture and the Ghana Tourism Authority to revamp their promotion activities to achieve the target of two million international arrivals by 2024.
https://allafrica.com/stories/202306010107.html
- WAMI, EMTECH Solutions Partner to Modernise Fintech Regulatory Frameworks
The West African Monetary Institute (WAMI) and EMTECH Solutions Inc. have struck a strategic partnership to modernise country-level and regional regulatory sandboxes, enabling the harmonisation of heterogeneous Fintech regulatory policies and frameworks across the West African Monetary Zone (WAMZ).
https://allafrica.com/stories/202305310265.html
- PURC Justifies Increase in Utility Tariffs
The Public Utilities Regulatory Commission (PURC) has justified the recent increases in utility tariffs, saying it is critical to keep utility service providers in operation amidst the current economic challenges.
https://allafrica.com/stories/202305310359.html
Francophone West Africa (WAEMU)
Senegal
- Senegal: USAID Heralds U.S.$31 Million Agreement with Government of Senegal to Deliver High-Quality Health Services
USAID Deputy Administrator Paloma Adams-Allen signed a new agreement with the Government of Senegal to deliver life-saving health services nationwide. The agreement provides U.S. support totalling $31 million over four years to improve maternal, child, and adolescent health and prevent malaria.
https://allafrica.com/stories/202305240340.html
- IMF Approves $1 Billion Financing Facility to Support Kenya’s Economy
The International Monetary Fund (IMF) has reached an agreement with Kenya that could provide vital financial assistance of over $1 billion. The agreement comes as Kenya faces mounting pressure on its finances due to escalating debt repayments and the severe impact of the worst drought in four decades.
https://kenyanwallstreet.com/imf-approves-1-billion-financing-facility-to-support-kenyas-economy/
Ivory Coast
- IMF approves US$3.5bn aid package for Ivory Coast
The International Monetary Fund (IMF) has approved an aid package for Ivory Coast totalling $3.5 billion. The first tranche is nearly $500 million. The programme, which the Fund’s Executive Board has endorsed, is spread over 40 months and should help the West African country implement “the national development plan put in place by the authorities while preserving its macroeconomic stability”, according to a statement.
https://www.africanews.com/2023/05/25/imf-approves-us35bn-aid-package-for-ivory-coast/
- Second week of abundant rain boosts Ivory Coast cocoa mid-crop
A second consecutive week of above-average rainfall in most of Ivory Coast’s cocoa-growing regions will boost the quality of the April-to-September mid-crop, farmers said on Monday. The world’s top cocoa producer is in its rainy season, which runs officially from April to mid-November.
East Africa
Kenya
- Kenya Central Bank lowers 2023 growth forecast to 5.5%.
Kenya’s Central Bank has lowered its economic growth projection for this year to 5.5%, a presentation by the bank’s governor, Patrick Njoroge showed on Wednesday.
https://www.reuters.com/world/africa/kenya-central-bank-lowers-2023-growth-forecast-55-2023-05-31/
- Kenya inflation rises to 8.0% y/y in May-2023.
Kenya’s inflation rose to 8.0% year-on-year in May from 7.9% last month, data from the statistics office showed on Wednesday. On a monthly basis, May inflation was at 0.9% compared to 0.5% in April, the Kenya National Bureau of Statistics said.
https://www.reuters.com/world/africa/kenya-inflation-rises-8-yy-may-2023-05-31/
- Kenya Leaves Key Rate Unchanged at Governor’s Last Meeting
Kenya’s central bank left the benchmark interest rate unchanged at its final meeting presided over by Governor Patrick Njoroge as it expects inflation to ease further. The monetary policy committee held the rate at 9.5%, Njoroge, who is due to step down next month after eight years at the bank’s helm.
- Kenya and Russia to sign a trade pact, President Ruto says
Kenya will sign a trade pact with Russia to boost cooperation between businesses, President William Ruto’s office said on Monday, after hosting Russian Foreign Minister Sergei Lavrov in Nairobi. Kenya’s presidency said that bilateral trade with Russia was still low despite the potential and the pact would give business the “nbusinesses impetus.
https://www.reuters.com/business/kenya-russia-sign-trad-pact-president-ruto-says-2023-05-29/
Tanzania
- Tanzania to review approval of $42 billion LNG project in June.
Tanzania’s government said on Wednesday it had completed negotiations with the investors of its $42.0bn liquefied natural gas (LNG) project, with the agreements set to be reviewed for approval next month.
Uganda
- Uganda says 2023/24 GDP growth to reach 6.0%
Uganda’s economy will expand by 6.0% in the next fiscal year that starts in July, an increase from projected growth of 5.5% this year, boosted by petroleum industry-related investments, the finance ministry said on 30-May.
- Uganda’s inflation reduces to 6.2% y/y.
Uganda’s Inflation has been registered at 6.2% y/y compared to 8.0% y/y in Apr-2023. The slowdown in the annual inflation is primarily attributed to annual core inflation, which slowed down, with the main drivers being Maize flour, rice, cassava flour and laundry soap. While announcing the Consumer Price Indices, the Uganda Bureau of Statistics disclosed that the annual core inflation slowed down to 5.6% y/y compared to 6.8 y/y in Apr-2023.
https://capitalradio.co.ug/news/2023-05-31-ugandas-inflation-reduces-to-62-percent/
Rwanda
- Producer Price Index Report – April 2023
Rwanda’s general Producer Price Index combining both prices for local and export products registered an annual increase of 9.5% in Apr-2023, Local PPI increased by 10.6% in Apr-2023, and Export PPI increased by 6.5% in Apr-2023.
https://www.statistics.gov.rw/publication/producer-price-index-report-april-2023
Mozambique
- Mozambique picks Total, EDF for 1,500 MW hydro project, Bloomberg reports
Mozambique picked TotalEnergies SE and Electricité de France SA (EDF) as strategic partners in a $4.5bn hydropower project, Bloomberg reported citing a government statement.
- Mozambique to Submit Its Tariff Offer to AfCFTA By June.
Mozambique must submit its tariff offer to the African Continental Free Trade Area Secretariat (AfCFTA) by Jun-2023. The tariff offer was ratified in 2022 by the Mozambican parliament, the Assembly of the Republic. This is according to the Minister of Industry and Trade, Silvino Moreno, who was addressing the press during the launch of Africa Week Celebrations.
https://allafrica.com/stories/202305250085.html
Southern Africa
South Africa
- South African factory activity contracts for 4th straight month – Absa PMI
South African manufacturing activity contracted for the fourth consecutive month in May, with a particularly steep decline in expected business conditions.
https://www.reuters.com/article/safrica-economy-pmi-idAFL8N37T1OL
- South African Expected Business Conditions Hit Three-Year Low
An index tracking expected business conditions in six months’ time in South Africa’s manufacturing industry fell to the lowest level in more than three years over concerns that the country is at risk of record blackouts this winter because the state power company may not have enough supply to meet increased demand. The gauge declined to 43.7 in May-2023 from 51 in April 2023.
https://twitter.com/business/status/1664212708953059328
- Sarb, JSE working on grid failure contingency plans
The South African Reserve Bank is working on a contingency plan to ensure the country’s payments system remains in operation in the event the nation’s electricity grid collapses.
https://www.moneyweb.co.za/news-fast-news/sa-plans-for-payments-continuity-if-power-grid-buckles/
- South African Finance Chief Sees Outages Weighing on Tax Revenue
South African Finance Minister Enoch Godongwana said he’s concerned about the impact of rolling blackouts and logistical constraints on tax revenue in the current fiscal year, as the Treasury reconsiders its economic-growth forecast.
- Cape Town’s Demand for Home Solar Panels Surges on Power Outages
Cape Town has set a record for the number of applications received to install solar power as South Africa’s electricity shortage worsens.
- Private companies to add 4 gigawatts to grid by end of 2024
South Africa expects private companies to add more than 4 gigawatts (GW) of electricity generation capacity to the grid by the end of 2024.
- Fitch Affirms South Africa’s Eskom at ‘B’; Outlook Stable
Fitch Ratings has affirmed Eskom Holdings SOC Ltd.’s Long-Term Local-Currency Issuer Default Rating (IDR) at ‘B’. The Outlook is Stable. The affirmation reflects Eskom’s strong links with the government, further supported by its debt relief plan over FY24-FY26 (year-end in March).
- S. Africa Grants BRICS-Meeting Immunity After Putin Invite
According to a Government Gazette published on Monday, the immunity covers a meeting of foreign ministers from the bloc, which groups Brazil, Russia, India, China, and South Africa, who will gather in Cape Town from June 1-2.
- Key Railway Serving South African Iron-Ore Exporters reopens, after brief shut-down
According to a spokesman of Transnet SOC Ltd., the 861-kilometer (535-mile) line that’s used to haul iron ore and manganese from Kumba Iron Ore Ltd.’s giant Sishen mine and other operations in the province to the port of Saldanha reopened on Wednesday night. (It was briefly shut after the theft of 11 spans of wire triggered a power failure on Tuesday).
https://www.moneyweb.co.za/news/south-africa/theft-shuts-key-railway-serving-sa-iron-ore-exporters/
- South Africa Tax Agency Updates Interest Rate Table for Loans
The South African Revenue Service May 29 updated the interest-free or low-interest rate table for loans. The repurchase rate is increased to 9.25 percent, from 8.75 percent, effective June 1. South Africa Tax Agency Updates Interest Rate Table for Loans
Angola
- Angola Cuts Fuel Subsidy, Following Nigeria in Boosting Prices
Angola reduced its gasoline subsidy, almost doubling pump prices in a nation that has some of the world’s cheapest fuel. The decision comes the same week that Nigeria, Africa’s biggest crude oil producer scrapped its own subsidy, causing pump prices to triple.
- Portugal, Angola Sign SSA
The Portuguese Ministry of Finance May 19 announced the same date signing of a social security agreement (SSA) with Angola. [Portugal, Ministry of Finance, 05/19/23]
Zambia
- Zambia urges official creditors to advance debt restructuring at next meeting
Zambia’s hopes of restructuring about $12.8bln of external debt have been hampered by the concerns of its main creditors, including its largest official bilateral creditor China and international bondholders, about the scale of relief required.
- Early Pension Bonanza Is Hitting Zambia’s Finances at a Bad Time
Zambia’s decision to allow citizens to cash out part of their pensions early is having an unintended consequence: it’s hitting a key source of government financing as the squeeze from a long-delayed debt restructuring continues to tighten.
https://www.moneyweb.co.za/news-fast-news/early-pension-bonanza-hits-zambias-finances/
Zimbabwe
- Zimbabwe Sees Exchange Rate Converging With Black Market
Zimbabwe’s Central Bank sees “near convergence” of the country’s official and black-market foreign-exchange rates, after a currency rout led to a 58% slump against the US dollar this month.
- Zimbabwean President Sets Presidential Elections for Aug. 23
According to President Emmerson Mnangagwa, Zimbabwe will hold its next general election on 23 Aug-2023.
https://www.bnnbloomberg.ca/zimbabwean-president-sets-presidential-elections-for-aug-23-1.1926948
Zimbabwe aims to become Africa’s carbon credit trading hub
Zimbabwe seeks to establish itself as Africa’s carbon credit trading hub with the launch of the Victoria Falls Stock Exchange and a pan-African carbon credit register.
- Zimbabwe Will Introduce 1% Tax on Foreign Payments From June 1
Zimbabwe’s treasury announced measures to encourage the use of the local dollar as opposed to the U.S. dollar, in a bid to boost the local unit and tame rising consumer inflation…
- Zimbabwe May Consumer Prices Rise 86.5% Y/y
According to the Zimbabwe National Statistics Agency (ZIMSTAT), Zimbabwe’s month-on-month inflation rate soared to 15.7% in May, gaining 13.3ppts…
https://english.news.cn/africa/20230527/4e739feb114f4cf4866f6b367ff52358/c.html
Central Africa
Cameroon
- Gaz du Cameroon: Govt vetoes 20% increase in tariffs
The Cameroonian government issued a decision opposing the 20% tariff increase for natural gas decided by Gaz du Cameroun (GDC), the local dealer of British Victoria Oil & Gas (VOG). The price increase was set to take effect on June 1.
- Cameroon gets a B rating from Fitch with a stable outlook
US rating agency Fitch, in a statement, has maintained Cameroon’s long-term foreign-currency issuer default rating at B and affirmed that the country has a stable outlook. The result followed a thorough evaluation of Cameroon’s issuer profile.
- Chinese investment fund supports Cameroon’s development with over CFA18,000bn
Cameroon is about to secure a valuable partner for its National Development Strategy 2020-2030. Yesterday, the Minister of Economy (Minepat) signed a Memorandum of Understanding (MoU) with Zhu Chunyu, the CEO of the Silk Road Investment Fund (SRIF), an investment fund controlled by the Chinese government. The validation of the agreement will see Cameroon receive a loan of $30 billion, or about CFA18,330 billion to finance development projects.
- Govt helped create over 15,000 SMEs in 2022 (official data)
About 15,601 new SMEs were created in Cameroon in 2022, according to the statistical directory on SMEs officially presented on May 30 in Yaoundé. The Minister of SMEs, Achille Bassilekin III (pictured), said they were created through the Business Creation Formalities Centers (CFCE), one of the entities put in place by the government to ease the SME creation process.
