November 17, 2023/United Capital Research
Anglophone West Africa
Nigeria
- Nigeria consumer inflation rises to 27.33% y/y in October
Nigeria’s consumer inflation rose slightly to 27.33% in annual terms in October from 26.72% in September, its bureau of statistics said on Wednesday. Inflation in Africa’s biggest economy has been in double digits since 2016, eroding incomes and savings, and prompting the central bank to repeatedly hike interest rates.
- Nigeria’s rice imports spend to outstrip Anchor Borrowers Programme funding
Nigeria may see the cost of its rice imports for the 2023/24 marketing year outstrip the cumulative N1.08 trillion spent under the Anchor Borrowers (ABP) – a scheme that provides farmers with critical funds and inputs needed to boost local production in eight years.
- Nigeria rice imports forecasted to be among highest globally in 2024
Nigeria is expected to import 2.1 million metric tonnes of rice in 2024, making it among the world’s largest buyer of the staple, a new report said. The Rice Outlook report published by the US Department of Agriculture’s Economic Research Service said Indonesia would import 2.0 million metric tonnes, also among the highest.
- Nigeria’s emergency economic intervention bill to amend dollar-based tax laws
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy, Tax Reforms, on Wednesday revealed that the federal government will soon send an” Emergency Economic Intervention Bill for consideration and passage to the National Assembly.
- Auctioneers poised for windfall as government revs up asset sales
Amid mounting speculation surrounding government asset sales to support the 2024 budget, the Certified Institute of Auctioneers, Nigeria (CIAN) has urged its members to proactively prepare for the anticipated surge in high-value auctions.
- FG signs 250MW power sale deal with Discos
The Federal Government through the Niger Delta Power Holding Company has signed a Power Purchase Agreement with utility companies to distribute a total of about 250MW across the country.
Ghana
- Ghana Sees Higher Growth and Lower Inflation in 2024
Ghana expects to reach a debt-relief deal in the coming week from its official creditors to qualify for further disbursements under a $3 billion International Monetary Fund loan program, Finance Minister Ken Ofori-Atta said.
- Ghana Sees Debt Deal to Unlock IMF’s $600 Million in Coming Week
Ghana expects to reach a debt-relief deal in the coming week from its official creditors to qualify for further disbursements under a $3 billion International Monetary Fund loan program, Finance Minister Ken Ofori-Atta said.
- Government receives proposals for external debt treatment
Ghana has received proposals from two bondholder groups on the country’s commercial debt (Eurobonds), Mr Ken Ofori-Atta, Finance Minister, announced on Wednesday, November 15.
- Gold Fields says progress “slower than expected” on AngloGold JV
GOLD Fields said it was taking longer than expected to conclude an agreement to form a joint venture with AngloGold Ashanti on adjacent mines in Ghana. It is envisaged that Ghana’s government will take a 10% stake in the joint venture diluting Gold Fields and AngloGold to 60% and 30% respectively. However, it requires the approval of the Ghanaian government.
- Ghana inflation slows to 35.2% y/y in October – statistics agency
Ghana’s consumer inflation slowed to 35.2% year on year in October from 38.1% in September, the statistics service said on Tuesday. The cocoa, gold and oil-producing country, which faces its worst economic crisis in a generation, is in talks with bilateral and commercial creditors to restructure its debts.
- Ghana announces pay rise for public sector workers
The Ghanaian government has announced that public sector workers who take home the minimum wage will have their monthly salaries increased by 23% from January 2024. The announcement was made on Tuesday following a meeting between representatives of the government and the labour union.
- African Development Bank approves $102.6m support programme for Ghana
The African Development Bank (AfDB) has approved a $102.6m budget support programme for Ghana focused on fiscal consolidation and economic recovery, the bank and Ghana’s finance ministry said on Thursday, 9 November.
- COCOBOD asked to Account for $I.3 Billion Syndicated Loan
Ranking Member on the Food, Agriculture, Cocoa Affairs Committee of Parliament, Eric Opoku, has asked the Ghana Cocoa Board (COCOBOD) to account for the $1.3 billion Cocoa Syndicated loan it took in 2022. According to him, before the new $800 million that is expected this year is approved by parliament, the COCOBOD must give proper accounts of the previous expenditure.
Francophone West Africa (WAEMU)
Senegal
- Wall Street’s Hunt for Water Profits Soaks Up Cities’ Precious Supply
African Agriculture Inc., an investment company based in New York, is growing 300 hectares (740 acres) of emerald-green alfalfa inside a desert nature preserve in Senegal. The farm draws from Lake Guiers — the country’s only freshwater reserve — to irrigate the thirsty crop.
- African Opposition Leaders Move to Halt Senegal Democracy Slide
A group of African opposition politicians have banded together to check democratic backsliding on the continent, starting with Senegal where presidential elections next year may exclude the main opposition candidate.
- Senegal: Senelec Signs 40 MW Battery Deal with Infinity Power
Senegal’s national electricity company Senelec has entered into a 20-year capacity change agreement with Infinity Power, a joint venture between Egypt’s Infinity and the UAE’s Masdar, to establish a battery energy storage system. The agreement focuses on implementing a 40 MW battery energy storage system to improve the stability of Senegal’s national grid.
East Africa
Kenya
- Key Highlights of Proposed Changes in Kenya’ First Supplementary Budget For FY 2023/2024
Kenya’s National Treasury tabled the first Supplementary Budget for the FY 2023/2024 in October of this year. Supplementary budgets are revised budgets prepared during a financial year that adjust revenue and expenditure in response to eventualities that occur during the implementation stage of the budget cycle.
- Kenya’s petrol price unchanged in latest review
The price of petrol in Kenya for the November 15-December 14, 2023 period remains unchanged, while the prices of diesel and kerosene have reduced by Ksh2.00 each ($0.013) for a litre of the commodities.
- Kenya gets additional $938 mln from IMF, soothing nerves
The International Monetary Fund has reached a staff-level agreement with Kenya, unlocking immediate access to a $682.3 million tranche and boosting the current lending programme by $938 million, the fund said on Thursday.
- Kenya’s National Debt Rises Sharply as Shilling Falls
Kenya’s national debt has increased by KSh 382.6 billion over the past one year because of the rapidly weakening shilling which has depreciated by 23% against the dollar in that time frame.
Rwanda
- Sunak Fights to Save Rwanda Plan to Fend Off Tory Rebels
Rishi Sunak is battling to resuscitate his plan to deport asylum seekers to Rwanda, a frantic bid to stave off a right-wing rebellion that poses a serious threat to his control over the governing UK Conservative Party.
- UK’s Sunak suffers major blow as Rwanda migrant scheme declared unlawful
Britain’s Supreme Court ruled on Wednesday that the government’s scheme to send asylum seekers to Rwanda was unlawful, dealing a crushing blow to Prime Minister Rishi Sunak before an election expected next year.
- Rwanda’s inflation is 11.2 percent year on year in October 2023
Rwanda’s Consumer Price Index (CPI), main gauge of inflation increased by 11.2 percent year on year in October 2023 down from 13.9 percent in September 2023.
Tanzania
- Holcim to divest its businesses in Uganda and Tanzania
Holcim has signed agreements to divest its businesses in Uganda and Tanzania. It has agreed to sell Hima Cement Ltd, its local subsidiary in Uganda, to the Sarrai Group, for an enterprise value of USD 120 million. Holcim has also agreed to sell its 65% participation in Mbeya Cement Company Ltd in Tanzania to Amsons Group for an undisclosed sum.
- Tanzania and Uganda sign gas pipeline deal
Tanzania and Uganda signed a bilateral agreement on Thursday, November 9, to construct a natural gas pipeline that will boost energy security and economic growth in both countries.
Uganda
- Russian-Backed Surveillance in Uganda Erodes Privacy, HRW Says
Uganda’s introduction of a surveillance system that uses mobile—phone technology undermines privacy rights and jeopardizes the right to freedom of expression in the East African nation, Human Rights Watch said.
- Ugandan MPs approve bill giving government oil import monopoly
Ugandan parliament on Tuesday passed the Petroleum Supply (Amendment) Act, 2023 granting Uganda National Oil Company (Unoc), a monopoly on supplying petroleum products. This comes against warnings that the move could instead worsen the problem it is intended to cure.
- Ugandan Fuel Companies Seek Share of High Grade Oil Import Business
Oil marketing companies (OMCs) under their umbrella body, Sustainable Energies and Petroleum Association (SEPA) want the amendment of the Petroleum Supply Act to take into consideration a provision to allow them import and supply special petroleum products.
Southern Africa
Angola
- Angolan Sonangol Reactivates Operation in Onshore Block in the Kwanza Basin
Sonangol has reactivated operational activities in block KON-11, in the onshore Kwanza basin, concluding the drilling of the “Tobias-13” well, with a total depth of 960 metres, the Angolan oil company announced in a statement.
- Angola Oct. National Consumer Prices Rise 16.58% Y/y
Angola’s headline Consumer Price Index (CPI) was flat in October, in line with our below-consensus estimate, with lower energy and core goods prices offsetting moderate gains across core services prices. Core CPI rose a modest 0.2% month over month (m/m), below expectations, as shelter costs posted their second smallest post-pandemic increase.
- Angola Opens New Luanda International Airport After Long Delay
Angolan President Joao Lourenco on Friday opened a long-delayed international airport outside the capital Luanda, with passenger flights scheduled to begin in early 2024.
South Africa
- Bond Rally Breathes New Life Into South Africa’s Currency
South Africa’s rand extended gains on Wednesday, heading for its biggest two-day advance against the dollar since July, as a rally in government bonds lured foreign investors back to the country’s debt.
- South African retail sales rise 0.9% year on year in September
South African retail sales rose 0.9% year on year in September after declining by a revised 0.3% in August, Statistics South Africa figures showed on Wednesday. On a month-on-month basis, sales increased 0.1%.
- South African President to Expand Energy Czar’s Authority
South Africa’s president will allocate more powers to his electricity czar to accelerate efforts to end the nation’s energy crisis, a top governing party official said.
- South Africa Tax Agency Clarifies Tax Consequences for Shareholders of Venture Capital Company on Termination
The South African Revenue Service Nov. 10 issued Binding Class Ruling No. BCR 087, clarifying tax implications for shareholders of a venture capital company upon termination. The company transferred assets, primarily shares, to a resident investment holding firm through an amalgamation.
- South Africa’s Employment Rises Above Pre-Covid Levels
South Africa’s employment rose above the level it was before the coronavirus pandemic struck, as finance and community and social service sectors added jobs.
Zimbabwe
- Zimbabwe platinum miners ask government to defer export tax
Zimbabwe platinum miners have asked the government to defer its planned 5% export tax on concentrates, pending the completion of smelters and the refurbishment of a refinery.
- Zimbabwe companies can report in US dollars, exchange CEO says- Bloomberg News
Companies listed on the Zimbabwe Stock Exchange now have the option of preparing their financial statements in US dollars, given the currency’s dominance in the economy, the chief executive officer of the bourse said.
- RBZ approves FBC acquisition of StanChart
The Reserve Bank of Zimbabwe (RBZ) has approved FBC Holdings Limited’s (FBCHL) purchase of Standard Chartered Bank Zimbabwe Limited (SCBZL), making it one of the biggest banks in the country.
- Zimbabwe platinum miners ask government to defer export tax
The Reserve Bank of Zimbabwe (RBZ) has approved FBC Holdings Limited’s (FBCHL) purchase of Standard Chartered Bank Zimbabwe Limited (SCBZL), making it one of the biggest banks in the country.
Central Africa
Democratic Republic of Congo (DRC)
- Congo’s Copper and Cobalt Trucks on Move as Strike Ends
A truckers’ strike in the Democratic Republic of Congo that blocked some exports of copper and cobalt has been resolved, according to people familiar with the matter.
- Tantalex signs lithium offtake agreement with Glencore
Lithium miner Tantalex Lithium Resources has finalised a lithium marketing offtake agreement and convertible facilities agreement, reaching a financial arrangement of up to $5-million with diversified miner Glencore.
Cameroon
- Ceneema expands budget for arable land project pilot phase.
The pilot phase of the arable land development project, as outlined in a framework signed on May 17, 2023, between the Ministry of Agriculture (Minader) and the National Center for Agricultural Machinery Studies and Experimentation (Ceneema), was approved by the Ceneema board on October 26.
- Cameroon govt pays CFA5.7bn to appease Globeleq
The Cameroonian government has paid CFA 5.7 billion to the British independent power producer, Globeleq, urging the company to resume operations at its Kribi gas plants (216 MW) and Dibamba fuel plants (88 MW). Globeleq had previously closed these plants on October 31, 2023, in protest of unpaid bills from the electricity company Eneo, resulting in significant power outages. In response to the situation, the government has now settled a portion of the debt to “appease Globeleq.”
- Access Bank Cameroon Making Giant Strides
Having commenced operations on May 23rd, 2022, with one business office in Akwa, Access Bank Cameroon has continued investing in its expansion within the country. The Bank opened its second branch in Bonamoussadi in August 2023 and is about to launch a third branch in Yaoundé before the end of the year 2023. This expansion drive shows the Bank’s commitment to the Cameroonian market.
- Cocoa price peaks at CFA2,000 per kg in Cameroon, its 7th increase in 3 months
The price ceiling for cocoa beans in Cameroon has peaked at CFA2,000 since November 10. This is the 7th increase in three months. On November 7, the price was still CFA1,930 FCFA, data from the sector information system (SIF) showed. The minimum price is now CFA1,925, up CFA75 from the previous limit.
- Cameroon partners with Spain to boost entrepreneurship and SMEs
Cameroon and Spain signed a framework partnership agreement on November 8 in Yaoundé to promote entrepreneurship and the development of SMEs.
- Cameroon alone accounts for 50% of mobile subscribers, 57.7% of smartphones, and 77% of 4G users in the Cemac region
Cameroon weighs heavily in the telecoms industry in the Cemac region, which also includes Congo, Gabon, Chad, CAR, and Equatorial Guinea.
