Image Credit: United Capital

November 24, 2023/United Capital

Anglophone West Africa
Nigeria

• Nigerian Central Bank Scraps Rate Meeting Even as Naira Plunges

Nigeria’s central bank scrapped a meeting of its monetary policy committee for a second time since Governor Olayemi Cardoso was nominated to the post in September, raising concerns about attempts to bolster the nation’s currency that’s plunged about 42% this year and is fueling inflation. A calendar of MPC meetings published on the central bank’s website had scheduled the next gathering for Monday and Tuesday.
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• As Investment Wanes in Oil Sector, Nigeria’s Rig Count Drops in October

Nigeria’s rigs count dropped to 13 in October from 15 the previous month, underscoring the waning investment in the oil and gas sector as well as the incessant disruptions to production in the Niger Delta.
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• Direct Remittances Up 3.74% to $1.85bn in Nine Months, September Records Lowest at $71m

Data released by the Central Bank of Nigeria (CBN), has revealed that Nigeria recorded $1.855 billion direct remittances in the first nine months of 2023, an increase of 3.74 per cent compared to the $1.817 recorded in the first 9 months in 2022.
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• Nigeria, Germany sign $500m renewable energy, gas deals

In a significant move to strengthen economic ties, Nigerian and German companies sealed two pivotal agreements in Berlin. The accords valued at $500m, encompass a renewable energy pact and a gas export deal, marking a milestone in bilateral cooperation, the Presidential spokesperson, Ajuri Ngelale said in a statement.
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• World Bank says inflation will push 2.8million Nigerians into poverty

Rising inflation and low economic growth in Nigeria will push a further 2.8 million people into poverty by 2023’s end, the World Bank has disclosed. The Washington-based bank said, “By the end of 2023, the rise in inflation and low economic growth will have contributed to an increase of 2.8 million people in poverty (y-o-y), a 0.4 percentage points bump to 37.5 per cent of the population.”.
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• Eni suspends World Bank arbitration in Nigeria oilfield dispute

Italian oil company Eni has temporary halted arbitration regarding an oilfield dispute with the Nigerian government, buying time to discuss the conversion of a licence from prospecting to one for production. Eni confirmed the suspension of the arbitration at the World Bank’s dispute settlement body regarding the OPL 245 oilfield, considered to be potentially the biggest oil block in the country.
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• 2023 supplementary budget: FG slashes wage award allocation by N100 billion  

The Federal Government has slashed the supplementary budgetary allocation for wage awards to federal civil servants by N100 billion. This is according to the approved supplementary budget for Ministries, Departments and Agencies (MDAs). In the proposed document, the wage award for four months was to cost the federal government around N210 billion.
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Ghana

• Ghana records $200 million trade surplus 1st half of 2023 – GSS

The Ghana Statistical Service (GSS) has revealed Ghana recorded a trade surplus of US$200 million in the first half of 2023. This is a turnaround in the US$400 million deficit recorded for the same period last year.
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• Ghana secures $800 million loan with international lenders at record interest rate of 8%

Ghana’s cocoa marketing board, COCOBOD, has agreed to its yearly loan for cocoa purchases with international banks at a record-high interest rate of 8%. This increase comes in the wake of the West African nation’s debt restructuring this year, which adversely impacted investor appeal. The deal is said to be the most expensive the board has ever agreed since 1992-93 when the arrangement began.
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• Ghana government values economy at GH¢1 trillion in 2024

The government is projecting the value of Ghana’s economy at over GH¢1 trillion in 2024, with a pledge to protect “at all cost the foundation for sustained economic expansion, achieved through the sweat and patience of the Ghanaian people.”
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• Free Zones Authority signs €1.84 m grant agreement with IFE

Ghana Free Zones Authority (GFZA) has signed a grant agreement with The Facility Investing for Employment (IFE) to enhance the water and sewage system at the Tema Export Processing Zone (TEPZ). The Tema Free Zone is the largest industrial zone in Ghana with a total area of 1,200 acres (480 hectares).
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• Ghana ponders sliding scale oil royalties to stimulate investment

Ghana plans to introduce a more flexible oil royalties regime as soon as next year to spur investment and reduce risk for energy companies, the head of the state oil sector regulator. The energy minister had agreed to the new royalties regime, clearing the way for it to be submitted to the cabinet for adoption next year.
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Francophone West Africa (WAEMU)
Ivory Coast

• China’s Rice Exports to Ivory Coast Top 2022 After India Curbs

China exported more rice to the Ivory Coast in the three months through October than in the whole of 2022 after India restricted shipments of the grain, with those curbs likely to extend into next year.
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• Standard Chartered facilitates €533m loan for Abidjan

West African nation agrees term loan facility that will be partially guaranteed by the African Development Bank. 
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Mali

• Mali signs agreement with Russia to build gold refinery

Mali’s military government said it has signed an agreement with Russia to build a gold refinery in the capital Bamako, one of a slew of deals between the two countries as Russia seeks to extend its regional influence.
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East Africa
Kenya

• Payroll taxes register biggest shortfall since Covid-19

Payroll taxes in the first quarter of the current financial year fell short of target by the biggest margin since the Covid-19 pandemic period, reflecting a tough labour market where firms are struggling to generate new jobs and offer pay rise.
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• IMF rescues Kenya from Sh300bn Eurobond scare

The International Monetary Fund (IMF) has moved to rescue Kenya from plunging into a financial crisis after the global lender confirmed that it was mobilising funds to help the country repay its $2 billion Eurobond maturing in June next year.
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• State to name defaulters as supplier debts hit Sh631bn

The Ruto administration has pledged to start naming State ministries, departments, and agencies (MDAs) as well as parastatals falling behind or defaulting on payments for services rendered or goods supplied after the arrears surged at a record pace in the first year in office.
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• Kenya ready to privatise 35 state companies, president announces

The Kenyan economy, the locomotive of East Africa, has been seriously shaken by Covid, followed by the shockwaves of the war in Ukraine and a historic drought in the Horn of Africa.
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• Kenya Outperforms Other Major SSA Economies on Fiscal Reforms

Kenya’s ongoing fiscal reforms have outpaced other major economies in the Sub-Saharan region, according to a report by the Fitch Group-owned BMI Research.
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• Ruto Implements Uhuru Strategy to Tame Fuel Prices

The government of President William Ruto has stepped in to subsidize fuel prices in the latest review to cushion Kenyan consumers, implementing a strategy used by his predecessor, Uhuru Kenyatta. It will be noted that President Ruto has previously criticised the fuel subsidy perfected by Mr Uhuru to stabilize fuel prices as unsustainable.
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• Kenya in talks to set up dry port in Uganda

The Kenya Ports Authority (KPA) on Wednesday started talks with Uganda to establish a dry port in Kampala, the capital of Uganda.
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Rwanda

• Rwanda, Cuba ruling parties agree to broaden cooperation

The ruling RPF-Inkotanyi and their Cuban counterparts, the Communist Party of Cuba (CPC) have agreed to broaden the framework of the existing ties with a view to promote the well-being of the people of both countries.
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• Chinese motor company mulls car assembling plant in Rwanda

In a move to expand its regional footprint, Dongfeng, a prominent Chinese motor company, is contemplating the establishment of a car assembling plant in Rwanda.
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• CIMERWA, Rwanda’s leading cement producer, to become majority owned by new long-term investor committed to regional expansion

PPC International Holdings Proprietary Limited (“PPCIH”) and local minority shareholders of CIMERWA Plc (“CIMERWA”) have individually entered into share purchase agreements which will see National Cement Holdings Limited (“National Cement”), one of the largest cement manufacturers in East Africa, acquire 99.94% of CIMERWA.
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Tanzania

• TIC nets projects worth over 5tri/- in quarter one

THE Tanzania Investment Centre (TIC) has registered 137 projects worth 2,069 million US dollars (about 5.2tri/-) in the first quarter (Q1).
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• Tanzania FDIs up by 70 pc

THE Ambassador of France to Tanzania, Mr Nabil Hajlaoui has hailed Tanzania for an attractive business environment that has enabled the country to rapidly increase the Foreign Direct Investment (FDIs) by 70 per cent in 10 years’ time.
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• NBC inks deal on Z’bar revenue collections

National Bank of Commerce (NBC) yesterday signed a Memorandum of Understanding (MOU) with six institutions of Zanzibar government to collect the authority’s various payments through its digital banking network and system.
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• TBS issues 145 certificates, licenses to manufacturers

Tanzania Bureau of Standards (TBS) has issued 145 certificates and licenses to manufacturers between June and November this year after their goods met the required criteria.
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Uganda

• URA launches platform to deter offshore tax evasion

In a bid to boost revenue collections, Uganda Revenue Authority (URA) recently unveiled the Voluntary Disclosure Program, a tool for taxpayers to report their foreign accounts and offshore assets.
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• Uganda, Kenya move to bolster each other’s tourism figures

Uganda this week dispatched over 200 delegates to Mombasa, Kenya for the second Uganda-Kenya Coast Tourism Conference.
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South Africa
Angola

• Bank of Angola Raises Benchmark Interest Rate to 18%

Bank of Angola raised its benchmark interest rate to 18% from 17%.
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• Angola to Lift Oil Exports to 1.145mn B/D in Jan-2024: Preliminary Plan

Angola plans to load 1.145mn b/d of crude in January, according to a provisional schedule seen by Bloomberg News. This includes 37 cargoes carrying a combined 35.5m bbl. It compares with 1.1m b/d in December’s final plan, which had 36 cargoes. The final January program is due to be released in late December.
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South Africa

• South Africa to Hold Rates, Affirm Higher for Longer

The South African Reserve Bank will likely leave the benchmark interest rate unchanged for a third straight meeting, while signaling it will delay easing monetary policy amid lingering risks to the inflation outlook.
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• Eggflation Boils in South Africa After Worst Bird-Flu Outbreak

South Africa’s worst outbreak of highly pathogenic bird flu led to a surge in the price of poultry-related products such as eggs in October, causing inflation to accelerate more than expected.
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• World Bank Says Crime Costs South Africa 10% of GDP Each Year

Rampant crime in South Africa is costing the country at least 10% of its gross domestic product annually and exacerbating already stark income inequality, a World Bank study found.
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Zambia

• Zambia Hikes Rate by Most in Four Years to Halt Currency Plunge

Zambia’s central bank lifted its benchmark interest rate by the most in four years to temper stubborn inflation and stabilize the local currency, which has come under pressure due to struggles restructuring debt.
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• Zambia Again Boosts Bank Reserve Requirements as Currency Dives

Zambia’s central bank took the drastic step of raising reserve ratio requirements for lenders for the second time in as many weeks in a bid to arrest its plunging currency, it says in a statement Tuesday. The Bank of Zambia increased the ratio by a further 2.5 percentage points to 17%. The new threshold is effective 27-Nov.
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• Zambian Bonds Plunge, Kwacha Slips to Record Low

Zambia’s dollar debt plunged after official creditors co-led by China and France rejected a revised restructuring proposal, stalling the revamp of $3 billion of outstanding Eurobonds.
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Zimbabwe

• Ariana Resources Kicks Off Due Diligence Drilling Program for Dokwe Gold Project in Zimbabwe

Gold exploration, development and production company Ariana Resources (AAU.L) commenced a due diligence drilling program on the Dokwe Gold Project in Zimbabwe.
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• Zimbabwean mining group Kuvimba earmarks $220mn for lithium mine development

Zimbabwe state-owned mining group Sandawana Mines, part of Kuvimba Mining House (KMH), plans to invest $220mn in developing a local lithium mine it acquired in 2019.
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Central Africa
Cameroon

• IMF and Cameroon agree to extend Economic Program until 2025

On November 17, 2023, the International Monetary Fund (IMF) announced it has reached a staff-level agreement with Cameroon to extend the existing three-year economic and financial program (July 2021 – July 2024) for 12 months until July 2025. This program, initiated in July 2021, aims to support Cameroon’s economic and financial reforms over the specified period. The reasons for this extension have not been unveiled by the IMF, but approval by the institution’s Board is awaited.
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• Cameroon dominates Cemac banking with 60% of accounts and 28.8% network, aiming for growth by 2030

Cameroon dominated the banking sector of the Cemac region in 2022. According to data reported by the central bank Beac, the country alone houses slightly over 2.8 million accounts open in bank records as of December 31, 2022. This represents 60% of the 4.7 million bank accounts recorded in the six CEMAC countries during the reviewed year.
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• Cameroon postpones its $333.2mln bond issue to 2024 amid rating worries and IMF support

Cameroon has postponed its $333.2 million international bond issuance until 2024, as revealed by Fitch Ratings in its latest creditworthiness analysis. This decision aligns with a proactive debt management strategy, responding to negative assessments by rating agencies and the commitments made by the International Monetary Fund (IMF).
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