August 25, 2023/United Capital
Anglophone West Africa
Nigeria
- Naira tumbles to 900/$, CBN vows BDC operators clampdown
The naira tumbled against the United States dollar at the parallel market on Wednesday, closing at 900/dollar. This came barely two weeks after the local currency was sold at 960/dollar at the black market. The naira, which had gained in recent days, returned to a downward trend as the shortage of the greenback hit the black market again. The local currency had traded between 850/dollar and 880/dollar earlier this week.
- NGX market capitalization rises by N422bn in 3 days.
The Nigerian Exchange Limited, NGX, has sustained bullish trend yesterday as investors gained N422 billion from the three days trading with market capitalization surging to N35.844 trillion from N35.422 trillion closed last week Friday. In similar manner, another stock market gauge, NSE All Share Index, ASI surged by 1.2 % to close at 65,492.92 points from 64,721.09 points it closed on Friday.
- The push for dollar asset listings in Nigeria …the gains, risks
The Nigerian Exchange Limited (NGX) recently disclosed its proposal to allow companies list bonds denominated in dollars on the bourse, potentially expanding this later to stocks too, with the aim of easing their difficulty in accessing hard currency in Africa’s biggest economy.
- Nigeria’s unemployment rate plunges to 4.1%
Nigeria’s unemployment has dropped from 33.3 percent in 2020 to 4.1 percent in the first quarter of 2023, and 5.3 percent in the fourth quarter of 2022. The 2020 figures and the current one was calculated using different methodologies, says the National Bureau of Statistics (NBS), after a two-year hiatus. After a two-year hiatus.
- Multiple taxation stifling investors’ confidence –NLNG tells Tinubu.
The Nigeria LNG Limited yesterday told President Bola Tinubu, that multiple taxation from various government agencies and the Finance Act which being amended yearly, distorts corporate planning and puts businesses on backfoot while stifling investors’ confidence and business opportunities in the sector. He disclosed that since inception, NLNG has contributed enormous revenue to the Federal Government through dividends and taxes, noting that even the FIRS declared the Company as the largest tax-paying Company in 2022.
Ghana
- GSS to Collect Data On Businesses Nationwide
The Ghana Statistical Service (GSS) is to begin a national economic census for data collection on all businesses in the country. Dubbed the “Ghana 2023 Integrated Business Establishment Survey 1” (IBES 1), which would begin in October with data collection, and would help the GSS to compile an online register of all businesses in the country.
- Ghana: Gh¢30 Million Arrears Owed Free SHS Suppliers to Be Cleared – NAFCo
The National Food Buffer Stock Company Limited (NAFCo) says it has largely cleared its arrears for 2022, leaving only GH¢30 million in outstanding. The payment, it said, represented about 85 per cent of its total indebtedness to suppliers for the period 2022.
- Govt Pays Over Gh¢2.7 Billion to Food Suppliers Since 2017
The government has paid over GH¢2.7 billion to the National Food Suppliers Association under the free senior high school policy between 2017 and 2022. The Chief Executive Officer of the Ghana Buffer Stock Company Limited (GBSCL), Mr Hanan Abdul-Wahab, who disclosed this during a press briefing in Accra on Monday, noted that this amount covers the supply of 18 food items to over 700 senior high schools, technical, vocational and community development schools.
- We Supported Govt With Gh¢47.9 Billion in 2021, 2022 …BoG Clarifies
The Bank of Ghana (BoG) has clarified that it supported the government to the tune of GH¢47.9 billion in 2020 and 2022 and not GH¢80 billion as being speculated in the section of the media.
Francophone West Africa (WAEMU)
Ivory Coast
- Disease and pest attacks worry Ivorian farmers.
Ivory Coast’s cocoa farmers are becoming increasingly worried that crop disease and pest attacks in parts of the top grower are threatening production.
East Africa
Kenya
- Average Tea Price Drops 1.4% w/w.
Average price declined to $2.13/kg at 21-Aug-23 sale in the Kenyan port city of Mombasa from $2.16/kg the previous week, auction manager Tea Brokers East Africa says in an emailed report. About 62.0% of the 14.9mn kg on offer was sold.
- Kenya eyes $80.6mn from AfDB after cutting domestic loans.
African Development Bank to provide about $80.6mn in budget support for Kenya, the lender says in emailed response to questions. Financing is awaiting approval by AfDB board and the program’s targeted reform areas are still under discussion. Kenya almost halved its budgeted domestic financing target and will replace some of it with concessional financing.
- Kenya plans to waive $813.0mn debt owed by sugar millers.
Kenya’s National Treasury is seeking consent from lawmakers to write-off KSh117.6bn in loans and tax penalties accrued by five state-owned sugar milling companies, Nairobi-based Standard newspaper reports, citing a memorandum to the National Assembly.
- Kenya targets $379.0mn primary surplus, first in two decades.
Treasury officials have said that Kenya could achieve a primary surplus this fiscal year, the first in two decades, if it can hit its revenue targets. The East African economy could post a primary surplus – the difference between revenue and expenditures without debt repayments – of KSh54.7bn ($379.0mn) in the fiscal period through June next year, the National Treasury’s Director of Macro and Fiscal Affairs Musa Kathanje said Friday in the capital Nairobi.
- Kenya July-2023 oversees remittances rise 18.4% y/y.
According to the Central Bank of Kenya, Kenya’s oversees remittances rose 18.4% y/y in July-2023 versus +6.07% y/y in Jun-2023.
Uganda
- Uganda lawmakers to authorise $518.0mn pre-approved World Bank loan.
According to the parliament’s website, Ugandan lawmakers are expected to authorize the National Treasury to borrow from the World Bank’s International Development Association for a project that was approved in 2022.
Southern Africa
Angola
- S&P affirms Angola ‘B-/B’ ratings.
Standard & Poor’s (S&P) has affirmed Angola’s ‘B-/B’ ratings, maintained outlook as stable.
Mozambique
- President Jokowi Affirms Indonesia’s Commitment to Strengthen Indonesia-Mozambique Cooperation
Indonesian President Joko Widodo (Jokowi) has affirmed Indonesia’s commitment to strengthen its partnership with Mozambique through cooperation in the economic and development sectors and optimize the Indonesia-Mozambique Preferential Trade Agreement (PTA).
- Absa appoints former Mozambique Prime Minister to board
Absa announced today that it has appointed Luisa Diogo, the former Prime Minister of Mozambique, as a non-executive member of the company’s board.
South Africa
- South Africa’s Yield Curve Steepens as Fiscal Risks Mount
A nervy environment for global bonds is adding to investor concern about South Africa’s fiscal outlook, pushing the government yield curve near its steepest in a year.
- South Africa Inflation at Two-Year Low Signals Rates Respite
South Africa’s inflation slowed to the lowest level in two years last month, beating expectations and providing room for the central bank to continue keeping interest rates on hold.
- South African rand slips before final day of BRICS summit
The South African rand slipped in early trade on Thursday, ahead of the final day of the BRICS summit of emerging economies in Johannesburg where the bloc is weighing expansion to give the “Global South” more clout in world affairs.
- South Africa’s Economic Hub Secures Initial Private Power Deals
Johannesburg, South Africa’s economic hub, has secured bids from private producers to provide 92 megawatts of electricity to help shield the city from nationwide electricity shortages.
- MTN Introduces Prepaid Funeral Insurance Product in South Africa
MTN South Africa has unveiled MyMTN Prepaid Funeral Khava, aimed at offering South Africans accessible and budget-friendly insurance coverage when they may need it most. South Africans can now protect their families from financial burdens after a loss of as little as R75 per year.
- South Africa joins China’s space alliance in race against US
South Africa will partner with China on space exploration as Beijing seeks to bolster its influence in the competition for lunar dominance against the US and its allies.
- BRICS Bank Struggles to Find South Africa Projects to Finance
The New Development Bank, a financial institution created by the BRICS bloc, is struggling to find viable projects to fund as part of its $3 billion pledge for South Africa’s Just Energy Transition initiative.
- Eskom Gets First Funds From $13.5 Billion Debt Plan
Eskom Holdings SOC Ltd. said on Tuesday that it has received 16 billion rand ($852 million) of a 254-billion-rand debt-relief package from the South African government.
- Southern African Bloc Backs $17 Billion Gas Infrastructure Plan
A southern African bloc of nations backed a $17 billion natural gas infrastructure plan to bolster energy supplies on a continent where almost half of the population lacks access to power.
Zambia
- Zambia raises rates as inflation moves further above target
Zambia’s central bank on Wednesday increased its benchmark lending rate by 50 basis points to 10.0%, noting that inflation had moved further above its target and was expected to stay high.
- Anil Agarwal pledges to pay Zambia creditors $250 million before retaking mine
Vedanta Resources Ltd. is ready to pay $250 million owed to suppliers in Zambia as soon as it resumes control of copper mines that were seized by the southern African nation’s government more than four years ago.
- Zambia’s 1H Mining Tax Collection Plunges as Copper Output Drops
Vedanta Resources Ltd. is ready to pay $250 million owed to suppliers in Zambia as soon as it resumes control of copper mines that were seized by the southern African nation’s government more than four years ago.
- United Arab Emirates-Zambia DTA, Protocol Enters Into Force
The Emirati Ministry of Finance Aug. 17 announced that the DTA and protocol with Zambia, signed Feb. 7, 2020, entered into force Jan. 13, 2023.
Zimbabwe
- Zimbabwe President Vows Defence of Local Dollar He Brought Back
Zimbabwean President Emmerson Mnangagwa vowed to defend the nation’s local currency on the eve of the southern African nation’s elections. Western nations had imposed sanctions on Zimbabwe but when they didn’t have the desired effect, they “decided to continue their attack on the economy and on our currency,” Mnangagwa said.
- Zimbabwe’s monthly inflation at minus 6.2 percent in August
Zimbabwe’s inflation remains in the negative margin at minus 6.2 percent in August, up by 9.1 percentage points from the previous month, the Zimbabwe National Statistics Agency (ZIMSTAT) said Monday.
Central Africa
Cameroon
- Cameroon’s Cocoa smuggling increased by a third in 2022-23.
Cameroon’s Minister of Trade Luc Magloire Mbarga Atangana stated in an interview in the capital, Yaounde, that Cocoa beans smuggled to neighboring Nigeria by farmers increased to 60,000 metric tons in the season that ended in July, from 45,000 tons a year earlier.
Democratic Republic of Congo
- Democratic Republic of Congo Says Foreign Reserves Increase.
According to the minutes from the Friday meeting, the Central Bank Governor Malangu Kabedi Mbuyi told the council of ministers that the Democratic Republic of Congo’s foreign reserves increased to $4.76bn. According to the International Monetary Fund, reserves stood at $4.5bn at the end of 2022,
