October 27, 2023/United Capital

Anglophone West Africa (WAEMU)
Nigeria

• Nigeria expects $10 bln in forex inflows in weeks -finance minister

Nigeria is expecting $10 billion in new foreign currency inflows in the next few weeks to ease liquidity in the foreign exchange market, finance minister Wale Edun told a conference. Edun said President Bola Tinubu had signed two executive orders to support the currency market, which has been on a freefall due to chronic dollar shortages.
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• Nigeria’s crude oil revenue soars by ₦274bn in September on improved output

Nigeria’s oil earnings surged by more than N273.8 billion in September 2023 on the back of an increase in crude oil output by sector operators. According to the most recent figures from the Nigerian Upstream Petroleum Regulatory Commission, Nigeria pumped 40,396,863 barrels of crude oil (excluding condensates) last month.
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• Nigeria’s Foreign Debt Service Up 18% Year-on-Year to $2.56bn

Debt servicing has continued to constitute a major threat to Nigeria’s economy as the CBN disclosed that it has spent $2.56bn to service the federal government’s foreign debt obligations in nine months of 2023. This represents 18 per cent YoY increase from $2.17bn in 2022.
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• Nigeria’s Net Foreign Assets plunges by 91% in September, according to latest CBN data

Nigeria’s Net Foreign Assets (NFA) plummeted by 91.7%, settling at N591 billion, as revealed by the Central Bank of Nigeria’s (CBN) most recent monetary statistics. This sharp decline follows a fluctuating trend that began in June 2023.
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• FG approves $3.45bn World Bank loan to boost power, other sectors

The Federal Executive Council accepted a $3.45 billion loan proposal to fund five projects. Projects in the power industry, renewable energy, state resource mobilisation, teenage girls’ initiative for learning and development, and a women’s empowerment project are among them.
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• EIU sees Nigeria’s oil production rising to 1.4m b/d by 2028

The Economic Intelligence Unit (EIU) has forecasted a “tentative” increase in Nigeria’s crude oil production, rising from an average of 1.12 million barrels per day (b/d) in 2022 to 1.4 million barrels per day by 2028.
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• CBN Ways and Means gulps FG’s oil revenue by 107%

The Federal Government of Nigeria’s interest payment on Ways and Means debt to the Central Bank of Nigeria (CBN) in the first half of 2023 surpassed the revenue it generated from crude oil, a report from the Budget Office of the Federation (BOF) has revealed.
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Ghana

• Ghana looks to market more oil and gas blocks

Ghana is looking to boost its oil and gas production by selling more exploration rights, aiming to avoid leaving valuable fossil fuels in the ground and generate revenue to fund its energy transition.
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• Private sector credit growth hits four-year low

Challenges facing the banking sector have taken a toll on businesses, with private sector credit dropping to a four-year low according to Bank of Ghana data. The banking sector, as revealed by the data, is at a critical juncture; and this unsettling trend, persisting over the past four years, highlights a growing risk aversion among banks – leading to a significant reduction in lending to both businesses and individuals in real terms.
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• Ghana, OCC to reach external debt swap agreement by end of 2023 – Fitch

Global ratings agency Fitch has predicted that the government of Ghana and the Official Creditor Committee along with the Paris Club will come to an agreement on an external debt restructuring programme by the end of 2023. Fitch anticipates that the government will however reach an agreement with private creditors on comparable debt swap terms in the middle of next year.
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• Food and Beverage Association calls for major tax cuts ahead of 2024 budget

The Food and Beverage Association of Ghana is calling on the government to announce major tax cuts for businesses in its 2024 budget as it would enhance economic growth among the business community to achieve the desired economic sustainability.
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Francophone West Africa (WAEMU)
Senegal

• IMF Staff Reaches Staff-level Agreement with Senegal on First Reviews of the Extended Fund Facility and Extended Credit Facility, and the Resilience and Sustainability Facility

A staff team from the International Monetary Fund (IMF) led by Mr. Edward Gemayel, conducted a mission in Dakar during October 12-24 to review progress under the authorities’ economic program supported by an EFF / ECF arrangement of SDR 1,132.6 million (about US$ 1.5 billion), combined with the RSF of SDR 242.70 million (about US$320 million).
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• Senegal Borrowing $1 Billion More This Year for Debt in 2024

The country is borrowing 604.8 billion CFA francs ($976 million) more in 2023 for debt service requirements in the first four months of next year, Minister of Finance and Budget Mamadou Moustapha Ba told reporters in the capital, Dakar.
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• China Tax Agency Announces Signing of DTAs, Protocol With Senegal, Cameroon

The Chinese State Administration of Oct. 17 announced the same date signing of a DTA and protocol with Senegal, and a DTA with Cameroon. 
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Ivory Coast

• Ivory Coast in fresh stand-off with cocoa buyers over premium

Ivory Coast is struggling to sell cocoa export contracts for the 2024/25 season with multinational companies demanding it lower prices, which are elevated due to a supply squeeze, the head of the country’s cocoa regulator said on Wednesday.
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East Africa
Kenya

• Kenya taps Sh75bn Trade Bank syndicated loan

Kenya is set to receive $500.0 million (Sh75.0 billion) in November from a syndicated loan arranged by the Trade and Development Bank (TDB), a top official at the National Treasury has revealed.
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• Bank depositors earnings up as interest rates hit 11-year high

Interest earned by bank customers from term deposits has risen to an 11-year high of 8.39 percent as commercial banks fight to match interest rates offered by rival asset classes.
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• Absa Bank loses Sh107 million to fraudsters

Absa Bank Kenya Plc has disclosed the loss of Sh107.7 million to fraud last year, highlighting the prevalence of the crime in Kenya’s financial sector.
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• Kenya’s World Bank debt crosses Sh1.5trn

The size of Kenya’s debt from the World Bank crossed Sh1.5 trillion in June on increased disbursements and depreciation of the shilling.
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• Retail investors dump shares, pump Sh174bn in government debt

Retail investors have loaned the Kenyan government an extra Sh174 billion this year as they flee from the stock market which has lost 29.4 percent of its wealth since January.
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• Laikipia conservation groups bag Sh108m from carbon trade

Pastoralist communities in Laikipia County have earned Sh108 million from carbon credits as environmental conservation efforts start to pay off.
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• Kenya’s Cassava Demand Exceeds Production By 200%

Kenya is relying on cassava importation from neighboring countries to meet high demand for the food product locally.
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• EU Grants Kenya 72 Million Euros Towards Green Environmental Sustainability

The European Union has granted Kenya over Sh11.4 billion (72million Euros) to support priority areas of green transition on environmental sustainability and digital inclusion, good governance as well as peace and stability.
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Rwanda

• Cargo hub boosts exporters

Agricultural produce exporters are upbeat on increasing volumes to the international market after RwandAir introduced a cargo flight.
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• Agriculture Ministry Rolls Out Plan to Eliminate Fake Seeds By 2030

The Ministry of Agriculture and Animal Resources, the National Seed Association of Rwanda (NSAR), and the Private Sector Federation (PSF) on Wednesday, October 25, launched a roadmap to strengthen partnerships in getting rid of fake seeds by 2030.
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• Rule of Law – Rwanda Maintains Top Spot in New Index

Rwanda has, for the third year in a row, ranked best in the region in a rule of law index published by World Justice Project WJP, an organisation that evaluates the adherence to rule of law principles in countries around the world.
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Tanzania

• Gvt Disburses 3.4bn/ – to Compensate Dodoma City Residents

The government has provided 3.4bn/- for payment of compensations to 85 Dodoma City Council residents who were embroiled in land disputes.
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• Tanzania Remains Steadfast in Management of Seabed Mineral Resources

Minerals Deputy Minister, Dr Steven Kiruswa has said achievements in the mining sector are highly attributed to President Samia Suluhu Hassan’s efforts to create a conducive investment environment for both local and foreign investors.
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• ‘Tanzania Good Investment Climate Encourages Chinese Investors’

China Ambassador to Tanzania, Chen Mingjian, has said good investment climate and the existing peace encourage Chinese investors.
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Uganda

• Uganda, DRC Anticipate More Trade After Abolishing Visa Requirements

Trade between Uganda and the Democratic Republic of Congo has received a boost following a decision to scrap visa requirements for citizens travelling across the borders of the two nations.
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South Africa
Angola

• CNCEC China to Build Angola’s $6 Billion Lobito Refinery

China National Chemical Engineering Co. is set to construct the 200,000 barrels/day Lobito oil refinery, Jornal de Angola reports, citing Minister of Minerals, Petroleum and Gas Diamantino Azevedo.
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• IOC Buys Two Lots; Agbami Exports Gain; China Imports

IOC purchased Angola’s Nemba from Eni and Nigeria’s Agbami from Chevron via a tender. Nigeria is scheduled to lift exports of its Agbami grade in December to the highest level since April. China’s crude imports from Angola dropped to a three-month low last month, according to customs data.
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South Africa

• South African Central Bank Sees Too Many Risks to Say Hikes Done

South African Reserve Bank Deputy Governor Fundi Tshazibana said there are too many risks to the inflation outlook to declare that the cycle of interest-rate increases is over.  The central bank’s monetary policy committee has raised interest rates by 475 basis points to 8.25% in its current tightening cycle that started in November 2021, and paused at its last two meetings.
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• South Africa Aug. Leading Indicator Rises to 110.9

According to the South African Reserve Bank South Africa’s leading indicator rose to 110.9 in August from 110.4 in July.
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• Sumitomo Rubber to Spend 13b Yen on S. Africa Plant

Sumitomo Rubber plans to invest Y13.0bn to revamp its plant in KwaZulu-Natal, South Africa, to supply higher end tires, Nikkan Kogyo reports without attribution. It will start production in 2025.
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Zimbabwe

• Reserve Bank of Zimbabwe Cuts Policy Rate to 130%

Reserve Bank of Zimbabwe cut its policy rate to 130% from 150%. Medium-term bank accommodation interest rate for the productive sectors including individuals and MSMEs will be
maintained at 75% p.a.
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• Zimbabwe Raises Power Tariffs by 18.8% With Immediate Effect

The Zimbabwe Energy Regulatory Authority approves tariff increment of US$0.02/KWh with immediate effect, the regulator says in an emailed statement. The tariff hike is first since October 2019 when the southern African nation pegged rates at US$10.63 /KWh.
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Central Africa
Cameroon

• Camwater signs school-to-employment deal with NHPSD

Cameroon’s water utility, Camwater, entered into a partnership agreement on October 19th with the National Higher Polytechnic School of Douala (NHPSD) to facilitate the professional integration of graduates.
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• Cameroon: Concrete iron producers agree to lower prices, despite soaring energy costs

Concrete iron producers in Cameroon have agreed to lower selling prices. The new price scale, which corresponds to a reduction of around 2% on all categories of concrete reinforcing bars used in the construction sector, was unveiled on October 20 by the trade ministry.
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• Cameroon completes 2018-23 bond repayment on the regional money market

The Cameroonian Treasury is soon going to complete the repayment of the money it raised on the regional market between 2018 and 2023. The final disbursement under this repayment plan- CFA52.8 billion- is expected to take place next November 15.
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• Cameroon regulates chicken and egg prices to fight market speculation

The Cameroonian government is taking measures to set fair prices for chicken and eggs across the country. According to information reported on October 23 by the head of the national poultry interprofessional organization (Ipavic), the move is to fight market speculation especially as the end-of-year celebrations approach.
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• Cameroon raises CFA50bn on the Beac market with higher rates

Cameroon’s Treasury raised a total of CFA49.8 billion on the Beac public securities market during the week of October 16 to 20, 2023, we learned. According to the operations report published by the central bank, these funds were raised through issues of 26-week fungible Treasury bills (BTA) (CFA39.8 billion raised out of CFA40 billion sought) and 52-week bills (the 10 billion sought were oversubscribed).
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• Cameroon secures CFA133bn AfDB loan to restore 173km of road in the Far North

The African Development Bank (AfDB) approved a loan of €203.11 million, or a little more than CFA133 billion to finance a road rehabilitation in the far North region of Cameroon.
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