June 16, 2023/United Capital
Anglophone West Africa
Nigeria
- Revenue from VAT, CIT falls 18% to N1.18trn
Revenue from Value Added Tax (VAT) and Company Income Tax, CIT, fell quarter on quarter (QoQ) by 18.6 percent to N1.18 trillion in the first quarter of 2023 (Q1’23) from N1.45 trillion in Q4’22.
https://www.vanguardngr.com/2023/06/revenue-from-vat-cit-falls-18-to-n1-18trn/
- Phone and generator imports gulped $3.5bn in 2022.
According to data from the International Trade Centre (ITC), Nigeria spent $3.47bn importing phones, generating sets, electrical transformers, and a host of other electrical equipment in 2022.
https://punchng.com/phone-generator-imports-gulped-3-5bn-in-2022-report/
- TotalEnergies announces Ntokon oil and gas discovery off Nigeria.
TotalEnergies has discovered oil and gas at the OML 102 offshore oilfield in Nigeria. ML 102 is operated by TotalEnergies Nigeria with a 40% interest, alongside state-oil firm NNPC Ltd which holds the remaining 60%.
- Nigerian president advised by team to cut state’s stake in oil and gas sector.
According to a policy document of a proposal drawn up by Tinubu’s policy advisory team, Nigerian President Bola Tinubu has been advised to reduce the state’s stake in the oil and gas sector to raise up to $17.0bn to boost economic growth during his four-year term.
- Phone and generator imports gulped $3.5bn in 2022.
According to data from the International Trade Centre (ITC), Nigeria spent $3.47bn importing phones, generating sets, electrical transformers, and a host of other electrical equipment in 2022.
https://punchng.com/phone-generator-imports-gulped-3-5bn-in-2022-report/
Ghana
- World Bank maintains 1.6% growth rate for Ghana in 2023.
The World Bank has maintained its 1.6% Gross Domestic Product (GDP) growth forecast for Ghana in 2023, far lower than the expected 3.2% for Sub-Saharan Africa.
https://myjoyonline.com/world-bank-maintains-1-6-growth-rate-for-ghana-in-2023/
- Ghana Begins Process to Integrate NCA in GDP Computation.
Ghana has started the process to integrate Natural Capital Accounting (NCA) in the computation of the country’s Gross Domestic Product (GDP) to promote holistic and inclusive growth and development. The NCA process in Ghana, which started about a year ago and being facilitated by the Environmental Protection Agency and the Ghana Statistical Service (GSS), and other Ministries and agencies, such as the Ministry of Finance, National Development Planning Commission, Ministry of Fisheries and Aquaculture Development, and Forestry Commission, is being supported by the World Bank.
https://allafrica.com/stories/202306120613.html
- Inflation resumes upward trend.
After declining for the first four months of the year, the consumer price inflation has resumed an upward trend again, increasing from 41.2% in Apr-2023 to 42.2% in May-2023.
https://www.graphic.com.gh/business/business-news/inflation-resumes-upward-trend.html
Francophone West Africa (WAEMU)
Senegal
- S&P maintains country’s sovereign rating despite political risk
With just a few months to go before the presidential elections, Senegal faces intense social upheaval that threatens to destabilise the economic landscape. But in a summary published at the beginning of June, S&P Global Ratings confirmed Senegal’s long and short-term sovereign credit ratings in foreign and local currencies at B+/B, with a stable outlook.
- Senegal’s Internet Shutdowns
Senegal’s government began blocking several digital platforms – including Facebook, WhatsApp, Instagram, Telegram and YouTube – in certain areas on 1 June. Days later, it extended the disruptions to all mobile internet and several television stations. The social networks were shut down for two days. This was followed by a four-day mobile internet shutdown.
https://allafrica.com/stories/202306140011.html
Sierra Leone
- IMF disburses $20.7 million to Sierra Leone ahead of elections as economic hardship worsens
The Executive Board of the International Monetary Fund (IMF) yesterday published a statement saying it has approved SDR 15.555 million (about US$20.7 million) to help cushion the impact of the accelerating decline of Sierra Leone’s economy.
- Sierra Leone, Food and Agriculture Organization (FAO) and Viet Nam sign agreement to develop the rice sector
Sierra Leone, FAO and Viet Nam today signed a South-South and Triangular Cooperation (SSTC) agreement aimed at developing the rice sector in the African country. The new project has an estimated budget of $5 million to be implemented through a Unilateral Trust Fund (UTF) from Sierra Leone.
East Africa
Kenya
- Budget squeezes salaried workers in bid to lift hustlers
The Kenya Kwanza administration has hit salaried workers and the middle class hard in its search for Sh211 billion in additional taxes to fund its first Sh3.6 trillion Budget, further squeezing incomes that are under pressure from high inflation.
- KCB lends Sh193bn through Fuliza, M-Pesa platforms
Mobile loans KCB disbursed grew by 22.5 percent in the year ended December to Sh193 billion, company disclosures show as more customers opt to conduct their transactions on digital channels. The growth in mobile loans was an increase from the Sh157.6 billion the lender distributed in 2021.
- Micro-financiers hit SMEs with up to 32pc interest rates
Microfinance banks (MFBs) are charging small businesses up to 32 percent interest rates on loans despite insisting on collateral, with the Central Bank of Kenya (CBK) warning that such high rates will hurt growth.
- Kenya’s Banking Industry Balance Sheet Crosses KSh 6.5 Trillion Mark
Kenya’s Banking Industry Balance Sheet size stood at KSh 6.5 trillion as of December 31st 2022, corresponding to 66% of Kenya’s Gross Domestic Product(GDP) in the same period. According to a 2023 Kenya Banking Industry Report by Agusto Market Intelligence (AMI), the Banking Industry’s growth over the past decade has been attributed to thriving mobile money systems, rising virtual banking solutions and substantial investments in technology infrastructure.
https://kenyanwallstreet.com/kenyas-banking-industry-balance-sheet-crosses-ksh-6-5-trillion-mark/
Rwanda
- Inflation Rate Eases in Rwanda on Softer Food Prices
Headline inflation pressure eased in Rwanda for the second straight month to 22.4% in May 2023 from 28.4% in the previous month, according to statistics office data. It was the lowest inflation rate since last August, with the food prices rising the least in nine months to settle at 39.6% from 54.6% in April, of which bread & cereals saw a decline to 15.6% from 35.1%.
https://dmarketforces.com/inflation-rate-eases-in-rwanda-on-softer-food-prices/
Tanzania
- Tanzania’s inflation eases again to 4 pct in May, 2023
Tanzania’s annual Headline Inflation Rate fell to 4.0 percent in May from 4.3 percent recorded for the month of April, 2023 according to the National Bureau of Statistics (NBS). The decrease of the headline inflation explains that, the speed of price change for commodities for May, 2023 dropped compared to the speed that was recorded for the April, 2023.
https://thebusinesswiz.co.tz/2023/06/09/tanzanias-inflation-eases-again-to-4-pct-in-may-2023/
- BoT, experts upbeat as Tanzania gets new favourable credit rating
Tanzania has received a favourable credit rating that increases the country’s ability to borrow from the international financial markets, according to economists and central bank officials. Fitch Ratings assigned Tanzania a rating of “B+” with a stable outlook, saying it reflects the country’s “fairly strong macroeconomic performance with high real GDP growth and contained inflation, a moderate level of debt, and increased reform momentum backed by a new IMF programme.”
- Investments in Tanzania Reached USD327.0mn in May 2023
The Tanzania Investment Centre (TIC) has just released its Monthly Investment Factsheet-May 2023 which indicates that a total of 52 investment projects worth USD 327.63mn were approved and registered in May 2023. These projects are expected to generate 6,279 new jobs.
https://www.tanzaniainvest.com/economy/investment-bulletin-may-2023
Uganda
- Uganda Central Bank Holds Its Key Lending Rate at 10%
Uganda’s central bank held its benchmark lending rate at 10% on Tuesday citing continued risks to inflation, despite a recent easing of prices across Africa’s top coffee exporter.
- Inflation declines to 6.2% in May
Uganda’s annual headline inflation decreased from 8.0% for the year ended April 2023 to 6.2% for the year ended May according to data released by Uganda Bureau of Statistics. The slowdown in inflation is largely attributed to the annual core inflation which slowed down 5.6% in the year ended May 2023 compared to 6.8% registered in the year ended April 2023.
https://www.independent.co.ug/inflation-declines-to-6-2-in-may/
Southern Africa
South Africaq
- Retail sales decline for fifth consecutive month
Consumers in South Africa continued to feel the impact of elevated inflation and high interest rates in April as retail trade sales fell for the fifth month in a row as the adverse effects of the prolonged power crisis weighed on general dealers, food and beverages retailers.
- SA has secured an immediate 100MW of electricity from Mozambique, says Ramokgopa
South Africa has secured an immediate 100MW of electricity from Mozambique, to be added intoaddetoto the national grid from as early as next week in a bid to alleviate the intensity of rolling blackouts.
- Mining output in April surprises on the upside
Mining production in South Africa surprised on the upside and rebounded in April in spite of intensified power cuts, but the ongoing structural challenges are expected to hamper higher levels of output.
- SA’s Agoa deal teeters as economists warn of consequences if it is scuppered
As South Africa appears to be the verge of losing the benefits of the African Growth and Opportunity Act (Agoa) from the US government, due to the country’s decision to remain neutral in Russia’s invasion of Ukraine, economists yesterday warned of the consequences to the already strained economy.
- PPC will hike prices as it hopes for SA spending and recovery
Cement maker PPC will implement biannual price increases to improve its margins, but warned demand for cement will remain muted without a “significant” increase in infrastructure spending and economic growth in SA.
- SA won’t change foreign policy for trade benefits, says Pandor
International relations & co-operation minister Naledi Pandor says SA would like to remain eligible for a trade pact that allows it preferential access to the US markets but the country will not be coerced into changing its non-aligned foreign policy stance on the conflict between Russia and Ukraine in order to remain eligible for the deal.
Angola
- Argentine Business Delegation Seeks Opportunities in Angola
A delegation from Argentina comprising some 25 companies will visit Angola from the June 22-23 to explore investment opportunities within the southern African country, Alejandro Verdier, the Argentine Ambassador in Angola has confirmed.
- President Announces Creation of Cybersecurity Academy
Angolan head of State João Lourenço has announced plans for the installation of a cybersecurity academy in the country.
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- Angola and Republic of Congo Strengthen Joint Migratory Measures
According to the final joint communiqué of the Angola and Republic of Congo bilateral meeting, which took place in the city of Cabinda, the parties approved that, as of July 10 of this year, it is suspended the visa on diplomatic and service passports.
- Foreign Investment to Fund 55% of 2050 Strategy
Around 55 percent of the overall amount of 1 trillion kwanzas for the gradual implementation of the Long-Term Strategy (ELP – Angola 2050) are expected to come from foreign direct investment, the minister of Economy and Planning, Mário Caetano João, disclosed.
- Portugal Announces New Credit Line for Angola
Portuguese Premier António Costa announced Monday in Luanda the opening of a credit line for Angola, estimated at 500 million euros.
Zambia
ERB fines 5 energy companies for breaching licence conditions
THE Energy Regulation Board (ERB) has fined five energy companies a total of K180,000 for breaching various licence conditions, which include dispensing fuel in public service vehicles with passengers on board. ERB has fined Vivo Energy Limited K60,000, RUBiS Energy Zambia Limited K30,000, Total Energy Marketing Zambia Limited K30,000, Puma Energy Zambia PLC K30, 000 and Oasis Oil Energy
- World bank to lend Zambia $210m as country targets to double CDF to K56m per year
According to the World Bank Zambia Devolution Support Program document made available to the Zambian Business Times – ZBT, the funds International Development Association – IDA has proposed to give the Zambian government a loan of $210 million to support the devolution Program from 2023 to 2026.
Central Africa
Cameroon
- Cameroon Bans Cocoa Exports to Nigeria
Cameroon just banned the export of its cocoa to Nigeria. The news was announced by Minister of Trade, Luc Magloire Mbarga Atangana, during a crisis meeting held on June 13, 2023, in Yaoundé.
https://www.businessincameroon.com/agriculture/1506-13206-cameroon-bans-cocoa-exports-to-nigeria
- Oil and Gas Outputs Up by 2.2% and 4.5%, respectively, in Q1 2023, YoY
Cameroon produced 8.01 million tons of oil in Q1 2023. According to the SNH, the State oil company, this is 2.2% more than the output recorded in the same period in 2022. The same source added that natural gas production stood at CFA916.01 million m3 in the first quarter of this year; thus 4.53% more than in Q1 2022.
- Cameroon will Spend CFA15 billion From Its Latest Bond’s Proceeds to Rebuild
Yaoundé will dedicate CFA15 billion to reconstruction projects in the Far North, and English-speaking regions (Southwest and Northwest) out of the proceeds of its latest bond issue on the Central African stock market.
- Cameroon pays back CFA63.4bn on Beac securities market, seeks additional CFA20bn
Cameroon made last June 5 the issuance of 7-year fungible Treasury bonds (OTAs) on the Beac public securities market aiming at raising CFA20 billion, the market timetable showed. The move was motivated by the success of the May 31 issuance when the country raised CFA15 billion with 13-week treasury bills; after consecutive failures on the market since the beginning of the year. On that same day, Cameroon also made two cumulative repayments totaling CFA63.4 billion.
- Investment growth reaches 3.4% in 2022, driven by the private sector
Investment in Cameroon grew by 3.4% last year, the National Statistics Institute (INS) revealed in a recent document. This performance, INS said, reflects a genuine economic recovery following the Covid-19 pandemic that shook the country in 2020.
- World Bank pledges CFA184bn to finance electricity development in Cameroon
The World Bank agreed to provide CFA184 billion to support the electricity sector recovery plan validated in Cameroon in February 2023. The good news was announced recently in Yaoundé during a high-level dialog between members of the government and representatives of the institution.
- Port of Kribi’s multipurpose terminal soars with clinker imports in 2022
Import traffic was very dynamic at the Kribi port’s multipurpose terminal in 2022, reports from the Port Authority PAK showed. According to available information, imports were a minor activity at this terminal between 2018 and 2021 before this take-off.
