United Capital Weekly Pan African Monitor Friday 12-Jan-2024

January 12, 2024/United Capital

Anglophone West Africa

Nigeria

Nigeria Central Bank sacks boards of three lenders for regulatory failures

Nigeria’s central bank has sacked the boards and management of three lenders for non-compliance with banking regulations and corporate governance failures, it said on Wednesday

Nigeria losing over $100bln annually to shipping agency transactions — NAMM

The Nigerian Association of Master Mariners (NAMM) has urged the Minister of Marine and Blue Economy, Gboyega Oyetola, to halt the continuous revenue losses the nation is incurring in its shipping agency businesses. Moreover, the group said the country is losing in excess of $100bn annually to foreign dominance of its shipping agency businesses.

Nigeria dollar bonds fall seven consecutive days following EFCC raid on Dangote

Nigeria’s dollar bonds maturing 2025 have fallen for seven consecutive days for their longest losing streak since September, suggesting that investors are watching what happens next in the Dangote-EFCC episode, reports Bloomberg.

TotalEnergies pledges $6 billion in Nigeria oil, gas investments

TotalEnergies reaffirmed its commitment to business interests in Nigeria, the French company said, adding that its head Patrick Pouyanne had met Nigeria President Bola Tinubu in Abuja on Monday.

World Bank predicts higher per capita income for Nigeria

The World Bank has projected that Nigeria’s per capita income will return to its pre-pandemic level by 2025. Per capita income or total income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area’s total income by its total population.

Ghana

Ghana’s unemployment rate to remain at 4.0% in 2024, 2025 – Fitch Solutions.

Ghana’ unemployment rate is expected to remain flat at 4.0% in 2024 and 2025, Fitch Solutions has stated in its Employment Outlook. This rate is the same as recorded in 2023.

Ghana’s economy to grow by 2.8% in 2024 – World Bank report.

A new report by the World Bank has projected a 2.8% Gross Domestic Product (GDP) growth of 2.8% for Ghana in 2024. The forecast was captured in the January 2024 World Bank Global Economic Prospects 2024.

Ghana’s Inflation Rate Slides to 23.2%.

Ghana’s annual inflation rate has declined for the 5th straight month to 23.2% in December 2023, the statistics office said in a report. This slowdown came as Accra initiated an economic policy to stem inflation rate pressure.

Francophone West Africa

Senegal

Senegal Dec. Consumer Prices Rise 0.8% y/y.

Senegal ‘s consumer prices rose 0.8% y/y in December versus +0.9% in November, according to the National Agency of Statistics and Demography.

Senegal Commits to Automatic Exchange of Financial Account Information by 2025.

The Organization for Economic Cooperation and Development (OECD) Jan. 4 announced that Senegal has committed to implement the standards of the OECD automatic exchange of financial account information (AEOI) agreement by September 2025.

Togo

Tax office targets CFA1,042 billion in revenues for 2024.

The tax office of Togo, OTR, plans to collect CFA1,042 billion this year. This is 14% more than its 2023 target, which was CFA912 billion. The new goal was set under the country’s 2024 finance bill.

Cote D’Ivoire

Cote d’Ivoire Gets €533m AfDB-Backed Sustainable Financing.

Proceeds are for projects that help to accelerate Côte d’Ivoire’s economic and social development, according to emailed statement by MLAB StanChart. Funds will go toward fostering sustainable development and supporting a range of eligible social and environmental projects, including education, health infrastructure, renewable energy, wastewater management, and pollution prevention and control.

Bank of West African States Raises Key Interest Rate to 3.5%.

The monetary policy committee of the central bank, also known as BCEAO, decided to increase the policy interest rate by 25 basis points, according to a statement on its website. Risks to inflationary outlook point to the upside, linked to both regional and international factors.

West African Bloc Sees Economic Growth Slowing to 3.7% in 2023.

West Africa’s growth slowed to 3.7% this year from 3.9% in 2022 due to the global economy and higher inflation, the Economic Community of West African States says in an emailed statement.

Benin Republic

Benin Tax Agency Posts 2024 Finance Law.

The Beninese Director General of Taxes Dec. 26 posted online Law No. 2023-01, the 2024 Finance Law.

Niger Expects First Oil Exports From Benin Pipeline Next Month.

Exports from a pipeline linking Niger’s Agadem oil fields to a port in neighboring Benin expected to begin in January, Nigerien junta leader General Abdourahamane Tiani tells state broadcaster RTN.

East Africa

Kenya

Kenya private sector activity declines at slower pace in Dec – PMI

Kenya’s private sector activity declined in December but at a slower pace than a month earlier, helped by easing inflation, with the service sector experiencing improved business conditions. The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 48.8 in December from 45.8 a month earlier.

Kenya’s Export Revenue Grew 19.6% to KSh269.4 billion in Q323

Kenya’s export to neighbouring countries grew in the third quarter of 2023, pushing the country’s total exports to KSh269.4 billion, a growth of 19.6 per cent compared to the same quarter of 2022. The largest share was export revenues from the African continent valued at KSh119.7 billion, constituting 44.4 per cent of Kenya’s overall export earnings.

Kenya Wants to Take a Minimum of 15% of Carbon Credit Income

Kenya’s government proposes to take at least 15% of earnings from terrestrial emissions offset projects in public areas and a minimum 25% from ocean-based initiatives. Project developers will also be required to share earnings with host communities to ensure that they benefit, according to draft regulations published on the environment ministry’s website.

Kenya’s Passport 6th Strongest in Africa

Kenyan passport holders can travel to 76 countries globally visa-free, a new data shows, indicating its growing prominence worldwide. The latest data compiled by the Henley Passport Index also ranks the country’s passport at number 67 globally, together with Malawi. The Seychelles passport is the most powerful on the continent at number 26, followed by Mauritius (30), South Africa (53), Namibia, and Lesotho at 65, as well as Eswatini (66).

CBK warns of mobile money fraud risk on unverified SIM cards

The Central Bank of Kenya (CBK) has warned Mobile Money Service Providers (MMSPs) and banks of the rising risk of fraud from remote registration of customers.

Government Sets Aside Ksh.500M For KCC Renovations

The government has set aside Ksh.500 million for the renovation New Kenya Co-operative Creameries (KCC) in the country to boost milk production and create efficiency. The plan is to increase production of milk from 4.2 million to 10.2 million litres per year.

Rwanda

Rwanda’s inflation is 6.4 percent year on year in December 2023

Rwanda’s Consumer Price Index (CPI), main gauge of inflation increased by 6.4 percent year on year in December 2023 down from 9.2 percent in November 2023. In December 2023, ‘Food and non-alcoholic beverages’ increased by 11.7 percent on annual basis and it decreased by 6.2 percent on monthly basis. Transport increased by 6.7 percent on annual basis and it decreased by 1.5 percent on monthly basis.

UK’s Rwanda asylum legislation to return to parliament next week

British Prime Minister Rishi Sunak’s legislation to block further court challenges to the government’s plan to deport asylum seekers to Rwanda will return to parliament next week. Sunak faced the most serious threat to his leadership when he saw off a revolt by dozens of his lawmakers during the first parliamentary vote on the draft legislation last month.

Tanzania

Tanzania Annual Inflation Fell to 3.0% in December 2023

The National Bureau of Statistics of Tanzania (NBS) revealed that the Annual Headline Inflation Rate for December 2023 fell to 3.0% from 3.2% recorded in November 2023. Meanwhile, the overall index went up from 110.1 recorded in December 2022 to 113.4 in December 2023. The Food and Non-Alcoholic Beverages Inflation Rate in December 2023 fell to 2.3% from 3.7% in November 2023.

Tanzania GDP Growth at 5.3% in Q3

Tanzania’s economy grew by 5.3% over a year ago in the third quarter of 2023, following a 5.2% rise in the previous three-month period. Tertiary activities contributed the most to the GDP, followed by primary activities and secondary activities. Financial and insurance services recorded the highest growth of 18.7%, followed by information and communication (+11.3%).

BoT to announce bank rate in two weeks

The Bank of Tanzania (BoT) has said it will issue the regulatory bank rate in two weeks as part of the implementation of the new monetary policy framework. Last week, the central bank announced the adoption of a new monetary policy starting this month to maintain price stability and support sustainable economic growth.

Uganda

Uganda Private Sector Growth at 6-Month High

The Stanbic Bank Uganda PMI rose to 54.8 in December 2023 from 53.4 in the previous month, surpassing the seven-and-a-half-year series average of 52.6 and the overall 2023 average of 53.8. It was the fourteenth consecutive month of expansion and the highest since June, with new orders showing further growth, mainly due to greater customer numbers.

Uganda estimates it will pay Umeme $225 mln when its power concession ends

Uganda estimates it will pay power distributor Umeme Limited (UMEME.UG) about $225 million to allow the utility to recoup its investments in the national grid after its concession ends in March 2025, a top energy ministry official said. Umeme, which is listed on both Uganda and the neighbouring Kenyan bourses, has been running a 20-year power concession in Uganda that started in 2005.

Govt to Spend Sh23 Trillion On Debt Repayment Next Financial Year

The Ministry of Finance has revealed that the Government will spend up to UGX 24.9 trillion on servicing Uganda’s public debt. This comes months after the Bank of Uganda reported that Uganda’s public debt as of August 2023 stood at UGX 88.807 trillion. The August debt figures do not include the UGX 7 trillion worth of loans Parliament approved in December.

Southern Africa

South Africa

South Africa’s Finance Minister Weighs Transnet Cash Injection

South Africa’s National Treasury is considering whether a cash injection is needed to fully fix state port and rail company Transnet SOC Ltd., Finance Minister Enoch Godongwana said.

South Africa’s Labor Unions Imperil Billionaire’s Port Takeover

South Africa’s powerful labor unions could scupper the nation’s plans to sell a stake in sub-Saharan Africa’s biggest container port and have it operated by Filipino billionaire Enrique Razon’s International Container Terminal Services Inc.

SAP to Pay Over $220M to Resolve Foreign Bribery Investigations

SAP SE (SAP), a publicly traded global software company based in Germany, will pay over $220 million to resolve investigations by the U.S. Justice Department and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA). “SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division.

South African ministry uses opaque modelling to argue for weakening climate ambition

The South African energy ministry has suggested that the country should scale back its climate ambitions, looking to use more gas and less renewables than previously planned. The ministry, led by pro-coal minister Gwede Mantatashe, released its draft Integrated Resource Plan (IRP) on Thursday.

South Africa Manufacturer Mood Turns Upbeat on Stronger Activity

Sentiment among South Africa’s manufacturers turned positive for the first time in eight months in December, propped up by more robust business activity and less intense rolling power cuts during the festive season. Absa Group Ltd.’s Purchasing Managers’ Index, compiled by the Bureau for Economic Research, climbed to 50.9 from 48.2 in November, the lender said in a statement on Monday.

Angola

Angola: Government Plans to Raise €11M to Finance 2024 Budget Deficit

The Angolan government plans to raise a total of 10 billion kwanzas (11 million euros) to cover the deficit in the 2024 General State Budget (GSB), as set out in this year’s Annual Debt Plan (PAE).

Angola: Government Assesses Process of Withdrawing Fuel Subsidies

The gradual withdrawal of gasoline subsidies in Angola began on June 2, 2023, a measure by the Angolan Government that raised the price of this petroleum product from 160 to 300 kwanzas/liter (current price). This price does not cover taxis and motorcycle taxis, as well as the productive sector (agriculture, fisheries, industry, among other areas) which continue to benefit from the State subsidy.

Zambia

Zambian Kwacha Set to Gain on Copper-Mine Ventures, Minister Says

Zambia’s currency will recoup losses against the dollar largely because of expected capital investments in two of its key mining assets, the nation’s finance minister said.

Affirma Gets $145 Million Zambia Power Deal After Threefold Gain

Affirma Capital, formerly Standard Chartered Plc’s private equity arm, closed a $145 million deal that gives it a direct stake in a key supplier of power to to some of the biggest Zambian and Congolese mines for copper and cobalt, metals that are pivotal to the transition to cleaner energy.

Access Bank Zambia Limited Completes Acquisition of Atlas Mara, Creates One of Zambia`s Top Five Banks

Access Bank Zambia Limited (“Access Bank”) announced today that it has completed its acquisition of African Banking Corporation Zambia Limited, trading as Atlas Mara Zambia (“Atlas Mara”) after obtaining all requisite regulatory approvals.

First Quantum Denies It’s in Talks to Sell Zambian Operations

“There is no truth in the report that First Quantum is in discussions to sell a stake in its Zambian operations to Jiangxi Copper Corp., or indeed any other company,” firm says in emailed statement.

Zambia Aims to Resolve Debt Revamp Standoff Within Three Months

Zambia plans to resolve a standoff among its creditors within the next three months that’s stalled efforts to restructure its debt, a senior Finance Ministry official said.

Zimbabwe

Currency Turmoil Returns in Zimbabwe With Local Dollar Plunging 40% on Black Market

Zimbabwe’s dollar has started the new year on the back foot, plunging more than 40% on the parallel market, as high demand for foreign-exchange continues to outstrip supply.

Zimbabwe Lowers Sugar Tax, Waives VAT on Some Basic Goods

Zimbabwe cut its special tax on sugar content and waived value-added tax on basics including bread, milk, cooking oil and corn meal, Finance Minister Mthuli Ncube says in an emailed statement.

Zimbabwe May Suspend Plan to Restrict Informal Trade, Raise VAT

Zimbabwe may suspend a move that forces businesses to procure goods from tax compliant and licensed entities, the Confederation of Zimbabwe Industries said in a note to members.

Zimbabwe gold output declines 15% amid electricity, forex shortages

Zimbabwe produced 30 metric tons of gold in 2023, 15% less than the previous year, official data showed on Monday, as electricity cuts and currency volatility impacted output.

Central Africa

Cameroon

Cemac faces financial crisis as unpaid bank credits surge to CFA1,917.9bn by 2022

The outstanding non-repaid bank credits of the Central African Economic and Monetary Community (Cemac) reached CFA1,917.9 billion on December 31, 2022. These overdue bank credits have multiplied by 4 compared to their level ten years earlier (CFA495 billion at the end of December 2012), as revealed by the Bank of Central African States (Beac) in its 2022 Financial Stability Review.

Cameroon govt sets CFA22bn+ food security fund for 2024

The Cameroonian government is pursuing efforts to guarantee food security for its population. For 2024, more than CFA22 billion, the equivalent of $38 million, will be invested for this purpose. This plan is part of the Emergency Project to Combat the Food Crisis in Cameroon backed by the World Bank with up to $100 million (more than CFA59 billion).

Cameron’s tax reforms for 2024 bring 5% reduced rate for digital platforms and influencers

In line with the measures to broaden the tax base outlined in the 2024 finance act of the State of Cameroon, a “reduced rate of 5% for non-commercial profit tax (NCP) is established for individuals operating on digital platforms, engaging in the sale of goods, provision of services, or exchange, and sharing of assets (collaborative economy),”.

Cameroon strengthens fiscal responsibility with mandatory tax compliance certificate for visa applicants

Since January 1, 2024, when Cameroon’s 2024 budget law came into effect, individuals seeking to obtain an exit visa from the country through a foreign embassy must now present a “tax compliance certificate” (TCC). According to tax officials, this document, as its name suggests, serves as proof that the holder is fully compliant with the tax authorities.

COY	OPENING PRICE	CLOSING PRICE	% CHG
MULTIVERS	16.70	20.15	+20.66%
UPDCREIT	7.10	8.20	+15.49%
IEI	2.95	3.32	+12.54%
AUSTINLAZ	4.01	4.43	+10.47%
UNILEVER	94.00	103.40	+10.00%

COY	OPENING PRICE	CLOSING PRICE	% CHG
SECURE	1.30	1.02	-10.00%
JOHNHLT	18.95	15.45	-9.99%
MAYBAKER	41.95	35.00	-9.98%
ALUMINUM	12.60	10.55	-9.80%
LEGINTNET	7.50	6.30	-9.62%

Updates:

United Capital Weekly Pan African Monitor Friday 12-Jan-2024

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