December 15, 2023/United Capital
Anglophone West Africa (WAEMU)
Nigeria
- Moody’s changes Nigeria’s outlook to positive, affirms Caa1 Ratings
Moody’s Investors Service has changed the government of Nigeria’s outlook to positive from stable and affirmed its Caa1 long-term foreign currency and local currency issuer ratings, and foreign currency senior unsecured debt ratings. The positive outlook reflects the possible reversal of the deterioration in Nigeria’s fiscal and external position as a result of the authorities’ reform efforts.
- AFDB, FED sign $20mln Trade Finance agreement to support SMEs in Nigeria
The African Development Bank (AfDB) has signed a $20 million Trade Finance Facility Agreement with FSDH Merchant Bank, to support small- and medium-sized businesses in Nigeria’s industrial and manufacturing sectors.
- CBN suspends processing fees on large cash deposits
The Central Bank of Nigeria has suspended the processing fees on large cash deposits. The new development affects deposits above N500,000 for individual accounts and N3,000,000 for corporate accounts. The suspension shall remain in effect until April 30, 2024.
- Nigeria records N948.07bn VAT in Q3 2023 – NBS
The National Bureau of Statistics said the aggregate Value Added Tax stood at N948.07b in Q3 of 2023. The report shows a growth rate of 21.34 per cent on a quarter-on-quarter basis from N781.35b in Q2 2023. It said local payments recorded were N522.08b, while foreign VAT payments contributed N204.58b and import VAT contributed N221.41b in Q3 2023.
- Federal Government may revisit 2024 budget as revenue rises
The Federal Government hinted yesterday that it might return to the National Assembly to seek an increase in the size of the 2024 budget, currently at N27.5 trillion, if revenue performance continues to improve.
- CBN suspends application for new loans under intervention funds
The Central Bank of Nigeria, CBN, has suspended application for new loans under it’s development finance intervention funds. Among other things, the CBN said it has commenced pull back from direct development financing interventions, adding that the banks are now responsible for recovery of loans granted so far under the development finance intervention funds.
- 2024 Budget: FG to rake in N298.5bn from privatisation
The Federal Government, FG, has proposed to rake in N298.486 billion from privatisation of government assets in 2024. The revised 2024 – 2026 Medium-Term Fiscal Expenditure Framework, MTEF, show that privatization proceeds for the 2024 fiscal year represents an increase of 44.8% against N206.182 billion in 2023.
- Edun pushes tax reform and digitalization for economic growth in 2024
Wale Edun, Minister of Finance and Co-ordinating Minister of the Economy, has reiterated the need for fiscal policy review and tax reforms for revenue generation to run Nigeria’s economy. He said such measures would attract domestic and foreign direct investment into the country for job and wealth creation.
- FG plans sale of 40% stake in Discos, others
The Bureau of Public Enterprises has said that it intends to sell remaining 40 per cent shares of the government in electricity distribution companies on the capital market in 2024. It said the BPE may also take four other assets to the market in 2024. The other assets include Eleme Petrochemicals Company Limited, Nigeria Re-Insurance, Nicon Insurance, and the Nigeria Machine Tools in Osogbo.
- Govt eyes 1.7mbpd crude, November output fell
The Federal Government declared that Nigeria would meet and surpass the 2024 crude oil budget benchmark of 1.7 million barrels per barrel despite the marginal decline in oil output in November 2023. Latest figures released by the Nigerian Upstream Petroleum Regulatory Commission showed that the country’s crude oil production, excluding condensates, dropped to 1.25mbpd last month.
- UK commits $15m to Nigeria’s agric sector
The British International Investment (BII), the United Kingdom’s development finance institution and impact investor, has concluded plans to invest $15m in equity into a Singapore-headquartered agricultural commodities trading house, Valency International. BII said that the fund was for the expansion of processing and warehouse infrastructure in Nigeria.
- Nigeria gets 40,000MW power from generators, says FG
Nigeria gets about 40,000 megawatts of electricity from generators powered by Premium Motor Spirit, popularly called petrol, and those run by Automotive Gas Oil, also known as diesel, the Federal Government declared.
Ghana
- UAE commits $30mn to Ghana’s forest sector resilience package
The United Arab Emirates (UAE) has committed to support Ghana’s Country Package under the Forest and Climate Leaders’ Partnership (FCLP) with $30mn, reports Starr FM. The Country Package will be implemented with partners from both government and the private sector, including the governments of the UAE, the United States of America, Singapore, and Canada.
- Ghana will not export lithium in raw state – Lands Minister
The minister’s explanation follows the mining lease granted to Barari DV Ltd, a subsidiary of Atlantic Lithium, for the exploitation of lithium at the Ewoyaa concessions in the Central Region. Already, the ministry and the Minerals Commission have said the deal is one of the best terms for Ghana and will be strictly enforced.
- Economy shrank by 5% — Report
Investment firm C-nergy Ghana says even though the economy has doubled in nominal cedi terms since 2017 to 2023, in dollar terms, the economy shrank by 5 per cent.
- Government creates jobs for 2.1 million people within seven years-Vice President
The government has recruited 2.1 million people into jobs, both in the private and public sectors, in the past seven years, the Vice President Dr Alhaji Mahamudu Bawumia has said.
- 3m Shea seedlings planted in Savannah zone
The Ghana Shea Landscape Emission Reductions Project (GSLERP) has so far planted three million shea seedlings and established several nurseries to restore the degraded forest reserves within the Northern Savannah Zone (NSZ).
Francophone West Africa (WAEMU)
Senegal
- IMF Executive Board Completes the First Review of the Arrangements Under the Extended Fund Facility, the Extended Credit Facility, and the Resilience and Sustainability Facility for Senegal
The IMF Executive Board completed today the first review of the Senegalese authorities’ economic program under the EFF, the ECF, and the RSF Arrangements. The completion of the reviews enables the immediate release to Senegal of about US$ 214.86 million (SDR 161.82 million) under the combined ECF/EFF and about US$ 64.45 million (SDR 48.54 million) under the RSF.
Mali
- UN Peacekeeping Mission Officially Ends in Mali
The United Nations mission concluded its ten-year deployment in Mali, as per the directive of the military administration of Mali. The mission, known as the UN Multidimensional Integrated Stabilization Mission in Mali (MINUSMA), lowered the UN flag at its headquarters in the country’s capital Bamako on Monday, December 11, 2023 according to UN spokesman Fatoumata Kaba.
- 4.8 Million People in Burkina Faso, Mali, Niger Facing Food Insecurity – Ecowas
The ECOWAS Commission said more than 4.8 million people across Burkina Faso, Mali, and Niger are facing food insecurity resulting from the spate of terrorist attacks and military takeover of their governments.
East Africa
Kenya
- Kenya eyes return to lower deficit this year, Treasury official says
Kenya is searching for ways to bring its budget deficit for this financial year close to its original target after a slump in its currency forced its upward revision, a finance ministry official said. The East African nation’s government revised its spending plans for the 2023/24 financial year to June 2024 in late October, after currency weakening increased foreign debt repayments by 1% of gross domestic product.
- Kenya to scrap visas for all visitors, president says
Visitors to Kenya from across the world will no longer require a visa from January, President William Ruto said. Ruto said his government had developed a digital platform to ensure all visitors would receive an electronic travel authorisation in advance, instead of needing to apply for a visa.
- Kenya settles $17m extra Kenya Airways debt
Kenya’s National Treasury has paid a further Ksh2.7 billion ($17.62 million) in Kenya Airways (KQ) guaranteed debt in the three months to the end of September after inheriting the burden from the national carrier. The repayments in the quarter include Ksh2.37 billion ($15.5 million) for principal repayments and Ksh351.29 million ($2.3 million) for interest payments.
- Kenyans cut vehicle imports by Sh22bn on taxes
Kenyans have slashed expenditure on the importation of motor vehicles by nearly a fifth on the back increased taxation, weakening shilling and shortages of second-hand units, signalling a revenue shortfall for the taxman. Fresh data shows the value of vehicle imports for 10 months through October amounted to $680 million (about Sh102 billion) compared with $825 million (Sh123.75 billion) in a similar period a year ago.
- CBK, European Investment Bank in a Deal to Unlock Climate Finance
The Central Bank of Kenya (CBK) has entered into an agreement with the European Investment Bank (EIB) to enable Kenyan commercial banks to access climate-related investments. The two-year technical assistance scheme is the first of its kind to be implemented in East Africa under the IEB’s Greening Financial Systems Programme.
- Kenya’s Annual Inflation Expected to Ease in 2024: Fitch
Kenya’s annual inflation is expected to ease to 6.8 per cent in 2024 and the monetary policy rate to follow the trend, the rating firm Fitch predicts in its African Banks Outlook 2024. Fitch expects Kenyan banks to continue reporting strong pre-impairment operating profits in the higher interest-rate environment, sufficient to absorb a potential increase in the cost of risk.
Rwanda
- Rwanda’s inflation is 9.2 percent year on year in November 2023
Rwanda’s Consumer Price Index (CPI), main gauge of inflation increased by 9.2 percent year on year in November 2023 down from 11.2 percent in October 2023. In November 2023, ‘Food and non-alcoholic beverages’ increased by 17.5 percent on annual basis and it decreased by 3.3 percent on monthly basis.
- Rwanda sets July election date for presidential and parliamentary polls
Rwanda will hold presidential and parliamentary elections in July next year, when President Paul Kagame will seek to extend his roughly three decades in control of the East African country. A presidential order in the official gazette said voting for president and 53 deputies in the lower house of parliament would happen across the country on July 15, and the remaining 27 deputies would be elected on July 16.
- UK paid Rwanda additional $126 mln for contested migrant plan
Britain paid Rwanda an additional 100 million pounds ($126 million) in April, on top of 140 million pounds it previously sent, as the bill for its contested plan to relocate asylum seekers to the East African country continues to rise.
Tanzania
- IMF board approves release of $151mln for Tanzania budget support
The International Monetary Fund’s executive board has authorised an immediate disbursement of about $151 million to Tanzania after approving its second review of its three-year extended credit facility, the fund said. The IMF said Tanzania’s economic growth was expected to pick up this year, but faced challenges from an unfavourable global economic environment.
- AfDB approves $696 mln finance for Tanzania-Burundi-Congo rail project
The African Development Bank has approved over $696 million in financing for a rail project to link Tanzania, Burundi and the Democratic Republic of Congo, the bank said. The project will connect to the existing rail network of Tanzania, providing access to the port of Dar es Salaam to neighbouring countries.
- BPS saves over 1tri/- in premiums, demurrage charges
The introduction of the Bulk Procurement System (BPS) in the importation of petroleum products has enabled the country to save 1tri/- in premiums, demurrage charges and evaporation losses per year. In strengthening reliable access of petroleum, the Tanzania Ports Authority (TPA) is expected to ink an agreement with a contractor on the improvement of infrastructure at the Dar es Salaam Port, a move aimed at obtaining a single receiving terminal operator.
Uganda
- Uganda holds policy rate to anchor inflation around target
Uganda Airlines has said it has established “groundwork” in which it will make a return on investment by at least 2027. The plan will enable the flag carrier to cover at least 85 percent of its operating costs. The airline’s continuous inability to return a profit has caused its return on assets to decline by 10 percent, according to its 2021/22 financial statement.
- Financial inclusion strategy will lower poverty, says BoU
Bank of Uganda (BOU) has unveiled the second National Financial Inclusion Strategy II (NSFII) 2023/28. The deputy governor Bank of Uganda said financial inclusion has emerged as a cornerstone of global development, fueling progress towards the Sustainable Development Goals (SDG) and broader aspirations.
- Uganda targets to produce 100 metric tonnes of gas by 2025
By 2025, Uganda will start the production of Liquefied Petroleum Gas (LPG) to replace wood energy, according to a top official from the Ministry of Energy and Mineral Development. The locally produced liquefied petroleum gas is expected to be cheaper than the imported products on the market.
Southern Africa
Angola
- Could Angola Become Africa’s Logistics Hub?
Yes, according to Catarino Fontes Pereira, head of Angolan logistics regulatory agency To help diversify the economy, the Angolan Regulatory Agency for Cargo Certification and Logistics (ARCCLA) oversees implementation of the country’s logistics network projects.
- President Appoints New Board of Directors of Angola’s Sovereign Wealth Fund
The Angolan Head of State, João Lourenço, on Wednesday (Dec 13) appointed Armando Manuel as Chairman of the Board of Directors of the Sovereign Fund of Angola.
- More Than a Thousand Piim Projects Completed
One thousand 138 projects linked to the Integrated Plan for Intervention in Municipalities (PIIM), of the 2,358 eligible projects across the country, have been completed and 565 have a level of physical execution of more than 70 percent.
- More Than 3,000 Kilometers of Roads Under Rehabilitation in the Country
More than 3,000 kilometres of roads are being rehabilitated across the country, through funding provided by the Government, within the framework of the National Road Rescue Programme, to improve the circulation of people and their goods, the Minister of Public Works, Urbanism and Housing, Carlos dos Santos, revealed in Huíla.
- Angola Needs 800,000 Tons/Year of Fertilizers
Eight hundred thousand tons of fertilizers are needed annually to support agricultural activity in the country, with a view to achieving food security, according to the director general of the Institute of Agrarian Development (IDA), Felismino da Costa.
South Africa
- South African Inflation Cools on Softer Fuel Prices
South African inflation slowed amid a sharp decline in fuel prices although other categories remained elevated, sending mixed signals to the central bank, which has cautioned it remains wary of ongoing cost pressures. The consumer price index rose 5.5% in November from a year earlier after a 5.9% gain in October, Pretoria-based Statistics South Africa said Wednesday in a statement.
- South African business confidence index rises in November
South African business confidence rose in November, as tourism and merchandise import volumes improved in month-on-month terms, data showed. The South African Chamber of Commerce and Industry (SACCI) Business Confidence Index increased to 111.5 points in November from 108.6 in October. Despite November’s increase, SACCI said in a statement that lingering economic challenges continued to drag on sentiment.
- South Africa Approves Three Power-Distribution Permits Amid Cuts
South Africa’s energy regulator approved three licenses to operate electricity-distribution facilities as the nation endures almost-daily power cuts. The National Energy Regulator of South Africa granted distribution licenses to the Klipfontein, Leliehoek and Sonoblomo solar facilities, all of which are in Dealesville in the Free State province.
- South African manufacturing output rises 2.1% y/y in October
South Africa’s manufacturing output rose 2.1% year on year in October after falling by a revised 4.1% in September, statistics agency data showed on Tuesday, 12 December.
Factory production was down 0.2% month on month in October, after dropping by a revised 0.8% in September.
- South Africa producer inflation slows to 4.6% y/y in November
South Africa’s producer inflation slowed to 4.6% year on year in November from 5.8% in October, statistics agency data showed on Thursday. On a month-on-month basis, the producer price index was at -0.6% in November from 1.0% the previous month, Statistics South Africa said.
- SA government announces nuclear procurement plans
South Africa will launch a bidding process for an extra 2,500MW of nuclear power by March, as the country attempts to tackle its worst power cuts on record.
Central Africa
Cameroon
- Cameroon petrol pumps overwhelmed after weather disrupts fuel deliveries
Stormy weather off the West African coast has stranded vessels and disrupted fuel deliveries to Cameroon, the energy minister said, leading to days of shortages that have caused long queues at petrol stations in several cities.
- Douala water supply mega-project set to commence in 2024
The mega-project for supplying drinking water to the city of Douala and its surroundings from the Wouri River is expected to kick off in 2024. It aims to achieve this by producing an additional 400,000m3 of potable water per day. This will increase the city’s production capacity to 703,400m3/d from the estimated 303,400 m3/d in 2021.
Democratic Republic of Congo
- Congo election commission seeks urgent help to distribute voting materials
Democratic Republic of Congo’s electoral commission (CENI) has asked the presidency to provide aircraft urgently to help distribute voting materials, just two weeks ahead of national elections.
