June 9, 2023/United Capital
Anglophone West Africa
Nigeria
- Nigerian Banks’ Exposure to $13bn Ghana Eurobond Pegged at $1.7bn
The extent of Nigerian banks’ exposure to the Ghanaian economic and fiscal crisis through subsidiaries operating in the country and investments in Ghana bonds has been exposed by a report released by Agusto &Co.
- Fuel importation: Marketers demand equal access to forex
Oil marketers have projected that the ex-depot price of Premium Motor Spirit, popularly called petrol, would hit N515/litre once they source foreign exchange rate at the parallel market for the importation of PMS.
- Pension funds investments in FGN securities rise – Report
The portion of the Pension Fund Assets invested in Federal Government Securities rose by 5.73 per cent at the end of the first quarter of 2023 to N10.196tn (Dec 2022: N9.644tn).
- Foreign trade declines by N2.6tn over FX shortage – NBS
The new Foreign Trade Statistics Report by the National Bureau of Statistics showed that the total value of trade decreased from N14.6tn in the first quarter of 2022 to N12.05tn in Q1 2023.
- Nigeria records second highest cyberattacks in Africa, says Kaspersky
Nigeria faces the second-highest number of cyberattacks in Africa according to a report by Kaspersky. Nigeria, which ranked 50th globally for online threats, was only behind Kenya which was ranked 35th globally. South Africa completed the top three, ranking 82nd globally.
Ghana
- Ghana May Private Sector PMI Unchanged at 51.3
A further softening of inflationary pressures helped to support demand across Ghana’s private sector during May. As a result, stronger expansions in output, new orders and purchasing activity were signalled and the business outlook brightened.
- Ghana’s 2024 elections may test fiscal discipline under new IMF program
Ghana’s presidential election next year presents a test for whether the government will stick to economic reforms outlined under a $3 billion International Monetary Fund bailout package.
- Ghana Nears Deal With Pension Funds on $2.6 Billion Debt Revamp
Ghana’s pension funds are close to agreeing to a deal to restructure $2.6 billion worth of government bonds they hold…
Francophone West Africa
Ivory Coast
- Heavy rain in Ivory Coast raises cocoa disease fears, farmers say
Well above-average rains last week in most of Ivory Coast’s main cocoa regions triggered fears of flooding and disease, which could damage the April-to-September mid-crop, farmers said on Monday.
- Cote D’Ivoire Tax Agency Announces Deadline for Filing Certified Financial Statements
The Ivorian Tax Administration May 31 announced the June 30 deadline for physical and electronic filing of financial statements, for companies required to certify their accounts by an auditor.
- Optimism on Plastics, IFC Data Portal: Africa CEO Forum Latest
Ivory Coast and neighboring Ghana, which together account for about two-thirds of global output of the chocolate-making ingredient, are in talks with industry players and experts about the pricing mechanism, Alex Assanvo, executive secretary of the Ivory Coast-Ghana Cocoa Initiative, said in an interview at the Africa CEO Forum in Abidjan, Ivory Coast’s capital.
Senegal
- Senegal ‘B+/B’ Ratings Affirmed; Outlook Stable
S&P Global Ratings affirmed its ‘B+/B’ long- and short-term foreign and local currency sovereign credit ratings on Senegal. The outlook is stable.
East Africa
Kenya
- Omtatah Claims Kenya Has Overpaid Its Debt By Sh1 Trillion.
Busia Senator Okiya Omtatah now claims that Kenya had paid off all its debts and that the government had even made an additional payment of Sh1.0tn. Omtatah said the government records show that Kenya has been making payments to its lenders but has failed to update its debt portfolio over time.
- KenGen Pays National Treasury Sh1.4 Billion in Dividends
Kenya Electricity Generating Company (KenGen) has paid the National Treasury Sh1.4 billion in dividends for the financial year ending June 2021. The payment follows a recommendation by the KenGen Board to pay shareholders final dividends of Sh2.50. The pay-out translated to a total of Sh1.98bn, of which other shareholders already received their entitlement in 2022.
- Absa to Invest Sh2 Billion in Solar Energy Projects
Absa Bank Kenya Plc will finance solar projects to the tune of Sh2 billion, with an aim to increase off-grid solar energy adoption across Kenya. The investment is part of a syndicated finance facility worth Sh17.9 billion ($130 million), which involves several commercial banks and other partners to fund environmentally friendly projects.
- Government in Push to Grow Manufacturing
President William Ruto said the identified value chains have significant untapped industrial potential and will create thousands of jobs. “We see leather, pyrethrum, cotton, textiles and apparel, pharmaceutical, edible oils as value chains whose industrialisation will hasten the attainment of our vision for national economic growth and transformation,” the President said.
Tanzania
- Govt, Unesco Sign Key Strategy to Advance Information Sector
The government and the United Nations Educational, Scientific, and Cultural Organisation (UNESCO) on Saturday signed Country Cooperation Strategy (CCS) aimed at advancing information as a public good in the country. The signing of the CCS affirms the cooperation between Tanzania and UNESCO within the UN Cooperation Framework related to building knowledge societies.
- Tanzania Has Moved Its Capital From Dar After a 50-Year Wait – but Is Dodoma Ready?
Tanzania designated Dodoma as its new capital in place of the seaside city of Dar es Salaam following a public referendum 50 years ago. Since then, the country has made small steps towards this goal – including the relocation of Parliament in 2017 – but Dodoma remained the national capital only in name. With the inauguration of the new presidential offices in Dodoma in May 2023, the transition to the capital is now all but complete.
- Tcb Extends 60bn/ – for Women, Youth Empowerment
Tanzania Commercial Bank (TCB) has issued loans worth over 60bn/- to women and youth groups which will help in their economic stability.
- BOT Insists Foreign Exchange Reserves Sufficient
The government and the United Nations Educational, Scientific, and Cultural Organisation (UNESCO) on Saturday signed Country Cooperation Strategy (CCS) aimed at advancing information as a public good in the country. The signing of the CCS affirms the cooperation between Tanzania and UNESCO within the UN Cooperation Framework related to building knowledge societies.
- Govt Signs Contract to Purchase, Construct Fishing Vessels
The government has signed a contract worth 349m/- for implementation of the Environmental and Social Impact Assessment (ESIA) project to purchase and construct fishing vessels so as to develop fishing in the deep sea.
- TBs Told to Conduct Product Verification Timely
TANZANIA Bureau of Standards (TBS) has been urged there is a need to conduct product verifications in the required timeframe to enable manufacturers and SMEs to get sustainable markets easily within and outside the country.
Uganda
- Uganda Questions South Sudan Decision to Impound Maize Flour
The Ugandan government, through the Ministry of East African Community Affairs, has expressed concern about South Sudan’s decision to impound its maize flour due to allegations that it is contaminated with aflatoxins.
- UBA Receives Additional Shs57.1 Billion to Shore up Capital Base in Uganda
The United Bank for Africa(UBA) Uganda has announced receiving an additional shs57.1 billion ($15.8M) from its majority shareholder and also parent company, UBA Nigeria PLC for capitalisation in a bid to comply with the government minimum capital requirements. The Minister of Finance in November 2022 signed a statutory instrument increasing the minimum capital requirements for commercial banks in Uganda to shs120 billion ($ 32.3 million )and shs150 billion ($40.4 million ) by December 31, 2022 and June 30, 2024 respectively.
Rwanda
- Telecos Excited About End of 4G Internet Monopoly
The end of 4G internet monopoly in Rwanda will enable competition, facilitate the development of new products, as well as lower prices for users, telecommunication companies have argued.
- Rwanda Set to Pilot 5G Internet
The Government is preparing to pilot fifth-generation technology (5G) by the end of this year, aiming to leverage high-speed internet to deliver services more efficiently, according to Paula Ingabire, the Minister of ICT and Innovation.
Southern Africa
South Africa
- South African business activity falls to almost two-year low – PMI
South African private sector economic activity contracted for a 3rd consecutive month in May-2023 as rolling power cuts and inflationary pressures continued to weigh on businesses. The S&P Global South Africa Purchasing Managers’ Index (PMI) fell to 47.9 in May-2023 from 49.6 in Apr-2023, the lowest level since July-2021.
- South Africa dodges recession as economy grows 0.4% in Q1-2023
South Africa narrowly avoided a recession as the economy grew marginally in Q1-2023, with manufacturing and finance holding up relatively well despite crippling power cuts.
- BRICS meet with ‘friends’ seeking closer ties amid push to expand bloc.
Senior officials from more than a dozen countries, including Saudi Arabia and Iran, were in talks on forging closer links with the BRICS bloc of major emerging economies on Friday as it met to deepen ties and position itself as a counterweight to the West.
- South African factory activity contracts for 4th straight month.
The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) edged down to 49.2 in May-2023 from 49.8 in Apr-2023, moving further below the 50-point mark that separates expansion from contraction.
Angola
- Angola finalising agreement with Congo and Chevron over oil block.
According to the oil minister, the Democratic Republic of Congo is nearing an agreement with neighbouring Angola over one of the offshore blocks between the countries that have been the subject of a 50-year dispute.
- Angola and Portugal sign new cooperation agreement.
The president of Angola, João Lourenço, has welcomed the Portuguese president, António Costa, in the capital, Luanda, on 05-Jun-2023. Ministers from both countries signed a total of 13 agreements ranging from financial to legal.
- US EXIM Bank Approves $900.0mn loan for 500MN Solar Projects in Angola.
The construction of the two solar project will generate over 500MW of renewable energy. The development aligns with President Biden’s Partnership for Global Infrastructure and Investment (PGII), a flagship program to advance the global digital and energy infrastructure.
- Angola cuts fuel subsidy days after Nigeria did same.
Angola scrapped its petrol subsidy, causing pump prices to triple. After the Cabinet meeting on 01-Jun-2023, the Economic Coordination Minister, Manuel Nunes Junior, stated that the subsidy reduction would take effect from Friday, 02-Jun-2023. By implication, pump prices would rise to KWz300.0/ltr. ($0.51) from KWz160.0.
Zimbabwe
- Zimbabwean Exemption Permits extended again.
Home Affairs Minister Aaron Motsoaledi has extended the Zimbabwean Exemption Permits (ZEP) for another 6 months. This was done to allow the Home Affairs department to process increased applications for waivers. The department has received more than 1,000 visa and waiver applications per day.
- Zimbabwe to deepen cooperation, promote development of friendship with China.
Zimbabwean President Emmerson Mnangagwa received the Letter of Credence from the new Chinese Ambassador to Zimbabwe Zhou Ding at State House in Harare, the capital of Zimbabwe. The president stated that Zimbabwe is willing to deepen cooperation with China in various fields under the framework of the Belt and Road Initiative and the Global Development Initiative.
Central Africa
Cameroon
- Soaring prices slow final consumption in Q4 2022 (INS)
Final consumption in Cameroon dropped sharply in the fourth quarter of 2022. According to the National Stats Agency (INS), which reported the information, the situation is the result of growing prices on the market.
- New twist in pipeline affair: Chad rejects Cotco’s newly appointed CEO
Nicolas de Blanpré, the former head of the Chadian subsidiary of British Savannah Energy was appointed MD of the Cameroon Oil Transportation Company (COTCo). The information was made public this week by Savannah Energy, which claims to have acquired the assets of American multinational Exxon Mobil in Cotco.
- Paul Biya adjusts the state budget to cover debt and support the population
Cameroon’s President signed a decree last June 2 to modify the 2023 Finance Act. Per this amendment, the state budget has been raised from CFA6,345.1 billion to CFA6,726.9 billion, up CFA381.8 billion (the general budget is up by CFA367.7 billion, while the budget for special appropriation accounts is up by CFA14.1 billion).
- Cameroon: Govt to transfer CFA165bn+ into a Single Treasury Account from local banks
The Cameroonian government plans to transfer CFA165.6 billion from local commercial banks’ accounts to the Single Treasury Account (STA) by the end of 2023. The public resource repatriation plan, set to unfold with the help of the Bank of Central African States (BEAC), was announced by Achille Bassahag, Director of Public Accounting at the Ministry of Finance.
- Cameron’s trade balance improved in 2022 despite a deficit
Cameroon’s trade balance has improved considerably in 2022, reaching 2.3% of GDP, the national stats agency INS found. And although it remained in deficit, the balance in 2022 was better than the 3.7% of GDP recorded in 2021.
- CCA Bank is about to secure a CFA3bn IFC expansion loan
Cameroonian credit institution CCA-Bank announced it has entered negotiations with the International Finance Corporation to obtain $5 million (about CFA3 billion) in financing.
- Contract Awards Surge in Cameroon’s Public Investment, but Execution Rates Fall Behind
The Public Investment Budget (BIP) in Cameroon was executed at 74.56% in 2021, according to the National Committee for Monitoring the Physical and Financial Execution of Public Investment. Compared to 2021, when the rate was 74.99%, this makes a decline of 0.43 pts.
