September 15, 2023/United Capital
Anglophone West Africa
Nigeria
- CBN Orders Banks to Save FX Revaluation Gains
The Central Bank of Nigeria, CBN, has ordered banks to save gains from foreign exchange (FX) revaluation as a buffer against emerging economic shocks. The regulator in this regard stopped banks from using FX revaluation gains to pay dividends or meet operating expenses.
- Leasing Contributed N16.3tn to Economy in 10 Years – ELAN
The leasing sector in Nigeria has contributed over N16.3tn to the economy in the last 10 years. The chairman of the Equipment Leasing Association of Nigeria, Elizabeth Ehigiamusoe, who made this disclosure in a statement, said the sector is becoming more relevant to Small and Medium Scale Enterprises in the country, due to the increasing cost of productive assets.
- UAE Visa: Meet Foreign Airlines Regularly, FG Tells CBN
The Federal Government, through the Ministry of Aviation and Aerospace Development has directed the Central Bank of Nigeria to convene quarterly meetings with foreign airlines operating in the country to address the issue of trapped funds.
- AfDB to Meet Investors Over Hybrid Capital
The African Development Bank has announced that it will hold investor calls across the globe for its new asset class, the global hybrid capital issuance. According to a statement issued by the pan-African bank, the investor calls will be held in New York, London, and Paris.
- CBN Orders Banks to Save FX Revaluation Gains.
The Central Bank of Nigeria, CBN, has ordered banks to save gains from foreign exchange (FX) revaluation as a buffer against emerging economic shocks. The regulator in this regard stopped banks from using FX revaluation gains to pay dividends or meet operating expenses.
- FTSE Downgrades Nigeria Over FOREX Crunch
Rating agency, FTSE Russell, has downgraded Nigeria from Frontier market status to unclassified market status over the inability of investors to repatriate capital. This was disclosed in its latest advisory on the country. In September 2022, Nigeria was added to the Watch List for possible reclassification from Frontier to Unclassified market status.
- Presidential Panel Plans 83% Cut in Taxes, Levies.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, has said Nigeria has over 60 different forms of taxes and levies. He said his committee was working to reduce taxes and levies to less than 10, which would be a decrease of 83.33 percent.
- BoI Grew Assets to N3.3tn in H1 – Report
The Bank of Industry says it has recorded another historic milestone by achieving N3.3tn in total assets as of June 30, 2023. According to the bank, this represents a year-on-year growth level of 67 per cent on the N1.97tn asset level as of June 2022. In a statement, it said the profit before tax after impairments has grown by 177 per cent year-on-year from N37.5bn in June 2022 to N104bn in June 2023.
Ghana
- African Central Banks Poised to Hold Interest Rates Amid Economic Uncertainties
In the face of potential threats to their respective currencies and rising borrowing costs in more developed economies, central banks across Africa are expected to hold their current interest rates steady in the coming weeks. However, rate hikes remain a possibility, particularly in response to internal issues within their own borders.
- Ghana Inflation’s Surprise Slowdown Eases Pressure for Rate Hike
Ghana’s inflation rate declined unexpectedly in August to a 10-month low, easing pressure on the central bank to keep raising borrowing costs. Annual inflation moderated to 40.1% from 43.1% in July, Government Statistician Samuel Kobina Annim told reporters in the capital, Accra on Wednesday. That was the slowest rate of change since October.
- Ghana Renews Bond Exchange Offer to Improve Debt Sustainability
Ghana’s government reopened an offer to exchange loans held by local bondholders for new securities to make its debt more sustainable. The invitation was made to holders of so-called eligible bonds that didn’t participate in a previous swap announced in February, the ministry said in a statement on Thursday. New securities that will be offered in exchange of existing bonds are expected to be more liquid, it said.
- Ghana Renews Bond Exchange Offer to Improve Debt Sustainability
Ghana’s government reopened an offer to exchange loans held by local bondholders for new securities to make its debt more sustainable. The invitation was made to holders of so-called eligible bonds that didn’t participate in a previous swap announced in February, the ministry said in a statement on Thursday. New securities that will be offered in exchange of existing bonds are expected to be more liquid, it said.
Francophone West Africa
Ivory Coast
- Ivory Coast Cocoa Farmers Want 2023-24 Farmgate Price Raised 44%.
Cocoa farmers in the world’s top grower want farmgate price for the season that starts on Oct. 1 raised to 1,300 CFA francs per kilogram from 900 francs/kg.
- EIB Lends €26m Toward Sustainable Agriculture in West Africa.
The European Investment Bank signed memorandum of understanding with Compagnie Financière Africaine to boost the development of sustainable agriculture value chains in West Africa.
Senegal
- Senegal July Consumer Prices Rise 5.3% y/y.
According to the National Agency of Statistics and Demography, Senegal ‘s consumer prices rose 5.3% y/y in August versus 5.7% y/y in July.
East Africa
Kenya
- National Treasury Drafts Strategy to Catch Tax Evaders
National Treasury and Economic Planning Ministry in Kenya has crafted a plan that will link the tax systems at the Kenya Revenue Authority (KRA) with data at the Integrated Population Registry, commercial banks, mobile phone companies as well as betting and gaming companies, and other third-party data sources.
- Flutterwave to Invest $50 Million in Kenya
Flutterwave, Africa’s largest fintech company, has announced plans to invest $50 million in Kenya once it receives regulatory approval from the Central Bank of Kenya (CBK). The investment will be used to hire new staff and scale up Flutterwave’s infrastructure in Kenya.
- Kenya Mobile Money Payments Hit 7 Month High on Account Growth
Mobile money payments grew by 6.3 per cent in July, with expectations of the wider growth in the coming months after the Central Bank of Kenya (CBK) approved higher transaction limits. The CBK data shows mobile payments hit Ksh684.64 billion ($4.7 billion) during the month, up from Ksh643.76 billion ($4.4 billion) in June.
- Kenyan Bank Deposits Soar to Record $34bln Amid High-Interest Rates
Deposits in commercial banks in Kenya rose by 430.4 billion shillings ($34.16 billion) in the first six months of 2023 to exceed 5 trillion shillings for the first time in June, driven by five-year high-interest rates, according to the central bank report. Deposits grew 6.9% to hit a record Sh5.16 trillion in June compared to Sh4.82 trillion in March.
- Kenya, Chinese Traders Sign Agreement To Boost Investment
The Kenya Investment Authority and the Kenya China Chamber of Commerce and Industry have signed a Memorandum of Understanding aimed at fostering investment in Kenya. The MOU encompasses various aspects of collaboration, including investment promotion, trade facilitation, capacity development, knowledge and technology transfer, project identification, networking, and advocacy.
- Kenyans to Go Through Banks for FOREX Over $100,000 as CBK Tightens Grip on Shilling Slide
Kenyans seeking to buy foreign exchange (forex) in excess of US$100,000 per day must now strictly go through commercial banks, following a new directive from the Central Bank of Kenya (CBK).
Rwanda
- Rwanda Signs Agreement to Build Test Nuclear Power Reactor
Rwanda will build a test nuclear reactor using a novel technology under an agreement between the East African country and a Canadian-German company called Dual Fluid Energy Inc. The reactor will use an innovative technique developed by the startup company using liquid fuel and lead coolant, resulting in less radioactive waste, the Rwanda Atomic Energy Board said in a statement.
Tanzania
- Tanzania Annual Inflation Stagnated at 3.3% in August 2023
The National Bureau of Statistics of Tanzania (NBS) revealed that the Annual Headline Inflation Rate for the month of August 2023 stayed at 3.3% as recorded in July 2023. Meanwhile, the overall index went up from 108.63 recorded in August 2022 to 112.25 in August 2023.
- Tanzania Secures Sh1 Trillion to Fund Agriculture Programmes
Tanzania has signed agreements for funding its agricultural programmes, including the $300 million (about Sh750 million) with the World Bank and the $100 million (about Sh250 million) pacts with the AfDB.
- Investments in Tanzania Reached USD 931 Million in August 2023
The Tanzania Investment Centre (TIC) has just released its Monthly Investment Factsheet-August 2023 which indicates that a total of 58 investment projects worth USD 931.60 million were approved in August 2023. These proje cts are expected to generate 25,731 new jobs.
- Private Sector Credit Remains Stable
Credit to the private sector remained strong, largely backed by higher demand for loans that are associated with improving business and investment environment. On an annual basis, the Bank of Tanzania (BoT) monthly economic review for August shows that the credit to the private sector grew slightly to 20.8 per cent in July compared to 20.1 per cent registered in the corresponding period last year.
Uganda
- Uganda Turns to Local Market for Funding After Freeze
Uganda is turning to local pension funds as a survival measure following external freezing of funding from the World Bank. The EastAfrican has learnt that the government is in talks with the World Bank for the lender to rescind its decision to withhold budget support for Kampala worth Ush6.7 trillion ($1.787 billion). The bank suspended funding last month in the wake of Kampala’s decision to pass a new anti-homosexual law deemed by the West as a violation of rights of minorities.
- Fitch Holds Uganda’s Credit Rating at B+, Expects Little Impact From Anti-Gay Law Fallout
Fitch has affirmed its B+ rating on Uganda’s debt and maintained a negative outlook, citing its fragile external position and reduced access to concessional finance arising from governance concerns, including the recently passed anti-homosexuality act.
- BoU Grants Salaam Bank First Islamic Finance License
Bank of Uganda has announced that it had granted its first Islamic banking accreditation, following the president’s recent assent to the final piece of legislation paving way for the banking method. The licence was awarded to Salaam Bank Limited, a newcomer to Uganda’s banking sector.
Southern Africa
South Africa
- South Africa Revenue Growing 2.6% Y/y vs 6% Budget Estimate: BD.
Figures at the end of August show South Africa’s tax revenue is growing slower than budgeted in February, Johannesburg-based Business Day reports, citing South African Revenue Service Deputy Commissioner Johnstone Makhubu
- Rand Rally Ends as Power Cuts Return: Inside South Africa.
South Africa’s rand extended earlier losses after Eskom Holdings SOC Ltd. announced it would ramp up rolling blackouts to so-called stage 6, where 6,000mw are removed from the grid.
- South Africa Weighs New Fiscal Anchor to Help Contain Debt Surge
South Africa’s National Treasury proposed introducing a new fiscal anchor as part of measures to contain rising debt and regain the country’s fiscal credibility. The recommendation forms part of a plan presented to President Cyril Ramaphosa last week
- South Africa’s Consumer Confidence Recovers in Third Quarter- Survey
South Africa’s consumer confidence regained some composure in the third quarter, according to a survey released on Thursday, as a rebound in the economic outlook and improvement in time-to-buy durable goods increased households’ “willingness” to spend.
- South Africa Current Account Deficit Widens in Second Quarter
South Africa’s current account deficit widened to 2.3% of gross domestic product in the second quarter from a revised 0.9% in the first quarter, central bank data showed on Thursday, 8 September.
- A Massive Diesel Price Hke Reintroduces Cost Pressures at the Onset of the New Agriculture Season
Following signs of moderation in costs at the farm level with fertiliser prices declining by over 30% relative to last year, hopes of reduced pressure on profit margins are almost dashed after the recent hefty increase in fuel prices particularly diesel for September 2023.
Zambia
- Zambian President to Visit China, Seeks to Formalise June Debt Deal
Zambian President Hakainde Hichilema will visit China from Sunday, China’s foreign ministry announced on Friday, bringing the indebted African country’s long-running struggle to restructure its external debt to its biggest creditor’s door.
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Zimbabwe
- New Faces in Zimbabwe’s 10th Parliament as Opposition Urged to Push for Electoral Reforms
Notable new faces in the current Parliament include Fadzayi Mahere, the former CCC spokesperson. She is representing Mount Pleasant, a constituency covering part of Harare’s affluent areas.
Angola
- Minister of Energy Assures Funding for Works on Caculo Cabaça Dam
The minister, who did not elaborate further details, said that various financing solutions are underway to complete the dam. João Baptista Borges was speaking to the press at the end of his visit to the construction works of the infrastructure.
- US-EU Announce Support for Angola-Zambia-DRC Corridor as Race for Critical Minerals Heats Up
On the margins of the Partnership for Global Infrastructure and Investment (PGII) event at the G20 Summit in New Delhi, the US and the EU expressed support for the Lobito Corridor, which seeks to connect ports in Angola to Zambia and the Democratic Republic of Congo
- Angola Oil Company Sonangol 5-Year Bond Was Fully Subscribed
Angolan state-owned oil company Sonangolsays a five-year 75 billion kwanza ($90 million) bond with a 17.5% coupon was 1.1 times subscribed, according to an emailed statement.
- ENI Announces 1bln Gas Project
According to the director of the Italian energy company, who was speaking at the 4th edition of the Angola International Conference and Exhibition “Oil and Gas 2023 (A0G2023)”, the New Gas Consortium (NGC) project, which involves ENI and Azule Energie, includes two offshore well platforms, an onshore gas processing plant and a connection to Angola’s liquefied natural gas (LNG).
- Angola to Maintain Focus on Investing in Oil, Gas Industry
Angolan Minister of State for Economic Coordination Jose de Lima Massano on Wednesday emphasized the crucial role of the oil and gas industry for the country’s economy and pledged continued investment in petroleum resource exploration.
- Angola AUG. National Consumer Prices Rise 13.54% Y/Y
Angola’s national consumer prices rose 13.54% y/y in August versus +12.12% recorded in July, according to the Instituto Nacional de Estatistica.
